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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.