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Ripple will allocate $10 million into tokenized U.S. Treasury bills that Asia’s largest tokenization platform OpenEden plans to issue on the XRP Ledger.
According to a Thursday press release, this will be the first time the short-term U.S. government debt, backed by U.S. Treasuries and collateralized reserve repurchases, will be available on the XRP Ledger to XRP (XRP) holders.
Ripple to unveil fund to invest in tokenized assets
Ripple stated in the press release that its investment in OpenEden’s tokenized assets will be through a newly created fund. Although the company has not disclosed specific details about the fund, it did note that $10 million from this fund will be invested in OpenEden’s TBILL tokens.
This investment is part of a larger strategy Ripple is pursuing related to tokenized T-bills and the broader Real-World Assets (RWA) market.
“OpenEden’s tokenized US Treasury bills represent another exciting example of how all types of real-world assets are being tokenized to drive utility and new opportunities,” Markus Infanger, senior vice president at RippleX, said.
The introduction of T-bills on the XRP Ledger strengthens the growing RWA tokenization market, the RippleX senior VP noted.
Mint TBILL with stablecoins
OpenEden, which holds over $75 million in total value locked for its U.S. T-bills, announced that users will be able to mint TBILLs using stablecoins. This will include Ripple USD, a U.S. dollar-pegged stablecoin that Ripple plans to launch later this year.
Currently, the top stablecoins in the market are Tether’s USDT and Circle’s USDC.
Real-world assets market
Tokenization is an expanding market as more financial securities and other real-world assets are brought on-chain. The benefits of blockchain technology have attracted significant players, including BlackRock, who have brought millions of dollars’ worth of traditional assets on-chain.
While Ripple is poised to welcome its first tokenized U.S T-bills, the company has seen traction in the RWA space with recent developments.
According to Team Ripple, XRP Ledger’s support for automated market makers, lending protocols, native oracles, and decentralized identifiers are some of the features that make the open-source blockchain crucial to the RWA and DeFi markets.