XRP Ledger Partners with OpenEden to Launch Tokenized US Treasury Bills

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XRP Ledger has partnered with OpenEden, an RWA tokenization platform, to offer tokenized US Treasury bills (T-bills). The move reflects an improvement in the institutional accessibility of decentralized finance (DeFi) by tokenizing real-world assets (RWAs).

As part of this partnership, Ripple is investing $10 million in the new TBILL token to demonstrate its support.

Ripple Invests $10 Million in TBILL 

OpenEden is tokenizing its US Treasury bills (T-bill) on the XRP Ledger, marking a step forward in Ripple’s tokenization endeavor. Ripple took to X to announce the latest development.

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

Ripple shared more details regarding the collaboration in an August 1 press release. The firm noted that the partnership will provide Treasury Department-backed short-term US government debt obligation to XRPL users. Also, the tokenized bills will enhance deeper institutional adoption of DeFi solutions.

A part of the statement read: “The tokenization of T-bills onto the XRPL is a demonstration of how the tokenization of traditional RWAs is driving institutional access to DeFi.”

Further, Ripple has offered its support to OpenEden’s TBILL tokens as part of the partnership. The San Francisco-based firm has invested $10 million to increase the fund allocation for OpenEden’s tokenized T-bills.

Ripple’s investment in the TBILL reflects its confidence in OpenEden’s real-world assets (RWAs) tokenization strategies.

RippleX’s Senior Vice President, Markus Infangus, reacted to the new collaboration and its expected positive impact. According to the executive, RWAs tokenization on the XRP Ledger creates utility and more opportunities for the tokens. 

Infangus highlighted XRPL’s remarkable features. XRPL boasts several features as a leading blockchain for institutions that explore tokenizations. The blockchain functionalities include Automated Market Maker (AMM) native Oracle support, Decentralized Identifier (DID), etc.

In addition, Infangus pointed out that the new development on XRP Ledger will boost Ripple’s upcoming stablecoin Ripple USD.

He stated: “Bringing tokenized T-bills to the XRP Ledger is the next step in our exciting journey. Purchasers will be able to mint our TBILL tokens via stablecoins, including Ripple USD, when it launches later this year.”

OpenEden Gains More Institutional Attention Via T-Bills

OpenEden is among the pioneering tokenization platforms for US T-bills of short-term government debt obligations that US Treasuries back. The platform employs a strict KYC and AML program to maintain high security and ensure regulatory compliance. 

Also, OpenEden has exceeded $75 million in total value locked (TVL) in T-bills tokenization. This achievement highlights its sustainability and investors’ confidence in its market growth.

Founded in 2022, OpenEden has established a robust footing, attracting several institutional customers, including corporate treasuries, foundations, and investment funds. 

In June, OpenEden’s tokenized US Treasury product earned an investment-grade “A” rating from a leading credit rating agency, Moody’s.

Other platforms have tokenized US Treasury bills besides OpenEden. 21.co, a public blockchain such as Ethereum, Avalanche, Stellar, Polygon, etc., has tokenized over $1 billion in Treasury bills.