Ripple, a provider of enterprise blockchain and crypto solutions, has partnered with OpenEden, a tokenization platform, to introduce tokenized U.S. Treasury bills (T-bills) on the XRP Ledger. This initiative makes short-term U.S. government debt available in tokenized form on the blockchain.
Ripple will invest $10 million into OpenEden’s TBILL tokens through a newly created fund. This move is part of Ripple’s strategy to engage with the tokenized Real-World Assets (RWA) market. Markus Infanger, Senior Vice President at RippleX, said, “OpenEden’s tokenized U.S. Treasury bills are an example of how real-world assets are being tokenized to drive utility and new opportunities.”
OpenEden’s platform will allow users to mint TBILL tokens using stablecoins, including Ripple USD, a U.S. dollar-pegged stablecoin planned for launch later this year. These tokens will be backed by short-dated U.S. Treasuries and reverse repurchase agreements, ensuring security and reliability. The process will include stringent KYC and AML screening for compliance.
Expanding the RWA Market
Tokenizing U.S. Treasury bills on the XRP Ledger is part of a broader trend of integrating traditional financial assets into blockchain systems. Tokenization can enhance efficiency, reduce costs, and improve liquidity in financial markets. Institutions are looking into tokenization to diversify portfolios and optimize asset management.
Jeremy Ng, Co-Founder of OpenEden, commented, “Bringing tokenized T-bills to the XRP Ledger is the next step in our journey. Purchasers will be able to mint our TBILL tokens via stablecoins, including Ripple USD when it launches later this year.”
Support from XRPL
The XRP Ledger, known for its reliability and feature set, provides a foundation for the tokenization of real-world assets. It supports automated market makers, lending protocols, native oracles, decentralized identifiers, and multi-purpose tokens, making it suitable for institutional-grade financial use cases.
OpenEden recently surpassed $75 million in Total Value Locked (TVL) for its tokenized U.S. T-bills, indicating market confidence. OpenEden’s TBILL tokens also received an investment-grade “A” rating from Moody’s.
Ripple’s $10 million investment in OpenEden’s tokenized T-bills aims to enhance liquidity and accessibility in financial markets. By bringing U.S. Treasury bills onto the XRP Ledger, Ripple and OpenEden are facilitating the integration of traditional finance with blockchain technology.
Image by Jesse Collins from Unsplash
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