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Ripple has made headlines with the launch of tokenized US Treasury bills (T-bills) on the XRP Ledger (XRPL), thanks to a partnership with OpenEden.
According to the announcement, this move proves an advancement in providing institutional access to decentralized finance (DeFi) through the tokenization of real-world assets (RWAs). The introduction of these tokenized T-bills also shows how blockchain technology is being adopted in traditional financial markets.
News alert – tokenization platform @OpenEden_Labs is bringing tokenized US Treasury bills (T-bills) to the #XRPL! What's more, Ripple is creating a fund to invest in tokenized T-bills, and will allocate USD$10M to OpenEden’s TBILL tokens as part of it. https://t.co/8GsG1Mk3ER
— RippleX (@RippleXDev) August 1, 2024
Bringing Tokenized T-Bills to XRPL
Notably, OpenEden is pioneering the tokenization of US T-bills, backed by short-term government debt obligations and reverse repurchase agreements secured by US Treasuries. To ensure high security and regulatory compliance, OpenEden enforces stringent KYC and AML screening processes.
In a show of support, Ripple invested $10 million in OpenEden’s TBILL tokens as part of a larger fund allocated for tokenized T-bills.
Markus Infanger, Senior Vice President of RippleX, noted the utility and opportunities created by tokenizing real-world assets on the XRPL, with institutions increasingly exploring tokenization, the XRPL’s features position it as a leading blockchain for these applications.
XRPL’s Expanding Ecosystem
The XRPL is equipped to handle institutional-grade financial use cases, featuring an Automated Market Maker (AMM), Decentralized Identifier (DID), and native Oracle support. These features make it an ideal platform for RWA tokenization and DeFi solutions.
Additionally, OpenEden’s achievement of surpassing $75 million in Total Value Locked (TVL) for its tokenized T-bills reflects market confidence. Further, OpenEden’s tokenized US Treasury product has previously earned an investment-grade “A” rating from Moody’s.
OpenEden has attracted a diverse range of institutional clients, including foundations, corporate treasuries, and buy-side funds. Co-founder Jeremy Ng emphasized the importance of bringing tokenized T-bills to the XRPL, enabling purchasers to mint TBILL tokens via stablecoins like Ripple USD upon its launch.