OpenEden, an asset tokenization platform, has announced a potential partnership deal with the XRP Ledger (XRPL) to tokenize US Treasury bills.
US Treasury bills are a short-term US government debt obligation backed by the US Treasury Department. The XRP Ledger will be used to tokenize these treasury bills, in a move set to bring institutional access to the decentralized finance (DeFi) industry.
OpenEden To Launch Tokenized US Treasury Bills on XRP Ledger
The tokenization of US Treasury bills on the XRP Ledger shows how institutional access to the DeFi industry is increasing because of the tokenization of real-world assets (RWAs).
In an official statement, Ripple stated that the OpenEden TBILL tokens go towards short-dated US treasury bills. The reverse repurchase agreements will be collateralized by US Treasuries.
The two parties will ensure that the assets meet the regulatory compliance requirements. The minters will have to comply with Know Your Customer (KYC) and anti-money laundering (AML) requirements to improve security and regulatory compliance.
Ripple also stated that it would allocate $10 million to the OpenEden US tokenized treasury bills. These tokens will be part of a larger fund that Ripple is planning to allocate to the tokenized T-bills that OpenEden will issue.
Tokenized RWAs Drive Utility
The Senior Vice President at RippleX, Markus Infanger, opined that the OpenEden asset tokenization platform was demonstrating how real-world assets can be tokenized to improve utility and provide access to new opportunities.
The executive noted that the recent offering came amid an increased need for institutions to tokenize real-world assets. The T-bills on XRPL will ensure that OpenEden emerges as the top decentralized blockchain for real-world asset tokenization.
Infanger said,
Institutions are increasingly looking at where to tokenize their real-world assets and the arrival of T-bills on the XRPL powered by OpenEden reinforces the decentralized Layer 1 blockchain as one of the leading blockchains for real-world asset tokenization.
The recent development comes amid the increased use of the XRP Ledger. Financial institutions use the network to bridge their offerings to the decentralized and blockchain industry.
Some of the XRP Ledger’s features include an Automated Market Maker (AMM) and the Decentralized Identifier (DID) that will be launching soon. It also has a Lending Protocol and native Oracle support.
XRP Ledger has been looking to expand its global footprint as a preferred blockchain for financial institutions. In May, Ripple Labs set up a new fund in Brazil to support projects created on XRPL.
Despite the recent development, the XRP price has barely reacted. XRP is down 6% in the last 24 hours to trade at $0.61 as of 07:56 a.m. EST. XRP was among the top gainers across the crypto market in June, gaining by over 25%.
