In a groundbreaking move, the XRP Ledger will now offer tokenized US Treasury bills (T-bills) to investors with a new Ripple partnership. This development comes through a partnership with OpenEden, a tokenization platform. This initiative is set to transform decentralized finance (DeFi) by integrating traditional real-world assets (RWAs) into the XRPL ecosystem, providing new investment opportunities and enhanced security.

XRP Ledger Expands With Tokenized US Treasure Bill Offerings

OpenEden’s introduction of tokenized T-bills to the XRP Ledger marks a significant milestone. T-bills, short-term US government debt obligations backed by the Department of the Treasury, will be available as TBILL tokens on the XRPL.

Meanwhile, these tokens are backed by short-dated US T-bills and reverse repurchase agreements collateralized by US Treasuries. To ensure security and regulatory compliance, minters undergo stringent Know Your Customer (KYC) and Anti-Money Laundering (AML) screenings.

In addition, Ripple, the firm behind the crypto XRP, is committing $10 million to OpenEden’s TBILL tokens. This investment is part of a larger fund allocated to tokenized T-bills provided by OpenEden and other issuers.

Markus Infanger, Senior Vice President at RippleX, emphasized the importance of this development and stated:

“Tokenized US Treasury bills demonstrate the potential of real-world assets in driving utility and new opportunities on decentralized platforms.”

Meanwhile, the XRPL’s robust infrastructure supports institutional-grade financial applications. Its features, including an Automated Market Maker (AMM), Decentralized Identifier (DID), Multi-Purpose Tokens (MPT) capability, Lending Protocol, and native Oracle support, make it a prime platform for RWA tokenization.

OpenEden’s TBILL tokens, reflecting $75 million in Total Value Locked (TVL), showcase growing market confidence in this approach.

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Institutional Access To DeFi

The partnership between XRP Ledger and OpenEden is not just about technology but about expanding access. OpenEden has attracted a diverse range of institutional clients, including foundations, corporate treasuries, and buy-side funds.

Jeremy Ng, Co-Founder of OpenEden, stated, “Bringing tokenized T-bills to the XRP Ledger marks a pivotal step in our journey. Investors will soon be able to mint TBILL tokens via stablecoins, including Ripple USD, set to launch later this year.”

Meanwhile, Ripple’s collaboration with Archax, the UK’s first Financial Conduct Authority-regulated digital asset exchange, further underscores the growing momentum. Archax plans to bring hundreds of millions of dollars worth of tokenized RWAs onto the XRPL over the next year.

Since its inception, the XRP Ledger has supported over 1,000 projects, processed more than 2.8 billion transactions without any failures or security breaches, and maintained over 5 million active wallets. With over 120 validators, the network remains a beacon of reliability and innovation in the blockchain space.

This strategic move to tokenize US Treasury bills on the XRPL highlights the evolving landscape of DeFi and the increasing integration of traditional financial instruments with blockchain technology. As institutional interest grows, the new partnership stands poised to offer secure, efficient, and innovative investment solutions for a diverse range of stakeholders.

Also Read: Fed Chair Signals September Rate Cut

The post XRP Ledger To Offer Tokenized US Treasury Bills With This New Partnership appeared first on CoinGape.

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Filed under: News - @ August 1, 2024 5:16 am