Guggenheim Treasury Services has partnered with blockchain firm Ripple to issue tokenized US Treasury-backed commercial paper on the XRP Ledger. This initiative marks a significant advancement in bridging traditional finance with blockchain through real-world asset (RWA) tokenization.
The commercial paper is fully collateralized by US Treasurys with maturities extending up to 397 days. Blockchain infrastructure will enable enhanced transparency and operational efficiency for the offering.
Ripple has invested $10 million to support the program, which may soon accept payments via its RLUSD stablecoin. RLUSD currently maintains a circulating supply exceeding $350 million.
The partnership targets faster settlement times and improved liquidity compared to conventional fixed-income instruments. This positions the tokenized commercial paper as a bridge between traditional fiat securities and blockchain ecosystems.
Tokenized US Treasury products continue gaining institutional traction, surpassing $7 billion in on-chain value. Industry heavyweights including BlackRock, Franklin Templeton, and Fidelity are similarly exploring digitized money market funds and government securities.
This development signals accelerating institutional adoption of tokenized RWAs as major financial players expand blockchain-based solutions across capital markets.