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- Ripple invests $10 million in OpenEdens tokenized T-bills on XRPL showing a shift of institutions into DeFi.
- OpenEden’s TBILL tokens, backed by US Treasuries and compliant with KYC/AML standards, have secured over $75 million in TVL.
- The addition of T-bills on the XRPL platform to create liquidity and maintain high visibility will attract more institutional investors.
Ripple has made a huge move in launching a $10 million bid in tokenized US Treasury bills (T-bills) on the XRP Ledger (XRPL) in decentralized finance or (DeFi). This investment is a significant sign of the shift towards integrating conventional financial institutions with blockchain technology which signifies an increasing interest in the DeFi assets.
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
The idea of tokenizing T-bills is being spearheaded by OpenEden, the company behind this specific financial tool that is now present on the XRPL. The tokenization process entails processing short-dated US T-bills as well as Reverse-Repo and encapsulating them as tokens proportional to their market value on the XRPL.
These assets come with collateral in the form of US Treasuries, and the requisite policies for Know Your Customer (KYC) and Anti-Money Laundering (AML) have been implemented to minimize risks.
Impact on DeFi and Market Reactions
Ripple’s considerable investment highlights another global turn to tokenized Real-world assets by institutions. Some of the valuable features include AMMs, as well as future upgrades such as DID and MPT, which are built on the robust and scalable system of the XRPL.
Currently, OpenEden’s TBILL tokens have already secured over $75 million and TVL, indicating that more people are entrusting this kind of approach to their assets. It is for this reason that TBILL tokens from OpenEden have also been given a Moody’s investment grade worthy of an ‘A’. When T-bills hit the XRPL, there will be liquidity and visibility that will follow, and this should come with more institutional wallets.
As of press time, the live XRP price is $0.598630, with a 24-hour trading volume of $1.9 billion. XRP has decreased by 8.30% in the last 24 hours. It currently holds the #6 position on CoinMarketCap, with a market cap of $33.5 billion. The circulating supply stands at 55,960,868,753 XRP coins, out of a maximum supply of 100 billion XRP coins.