In a significant move for decentralized finance (DeFi) adoption, Ripple is partnering with OpenEden to offer tokenized US Treasury bills (T-bills) on the XRP Ledger (XRPL). This collaboration brings short-term US government debt, backed by the Department of the Treasury, to XRPL users for the first time.
“The tokenization of T-bills onto the XRPL is a demonstration of how institutional access to DeFi is being driven by the tokenization of traditional real-world assets (RWAs),” Ripple announced.
This development follows a growing trend – over $1 billion in Treasury bills have already been tokenized on blockchains like Ethereum and Polygon, according to data from 21.co. Ripple’s involvement further legitimizes the space and signifies the potential of DeFi for institutional investors.
Ripple Invests $10 Million in OpenEden’s TBILL Tokens
Demonstrating its commitment to the initiative, Ripple is allocating $10 million into OpenEden’s TBILL tokens, backed by short-term US Treasuries. This investment is part of a larger fund Ripple intends to dedicate to tokenized T-bills offered by OpenEden and potentially other issuers.
Markus Infanger, Senior VP at RippleX, commented, “The arrival of T-bills on the XRPL powered by OpenEden reinforces the decentralized Layer 1 blockchain as one of the leading options for real-world asset tokenization.”
OpenEden Garners Traction with Institutional Investors
OpenEden has already surpassed $75 million in Total Value Locked (TVL) for its T-bill tokens, attracting significant institutional interest. This includes foundations, corporate treasuries, and buy-side funds. Notably, OpenEden’s tokenized US Treasury product holds an investment-grade “A” rating from Moody’s, further bolstering its credibility.
Also Read: XRP Soars (2.34%) As Ripple Unveils XRPL EVM Sidechain For Enhanced DeFi & RWA Tokenization
Jeremy Ng, co-founder of OpenEden, stated, “This collaboration with Ripple is a major step forward for DeFi and the tokenization of RWAs. We’re excited to bring secure and compliant access to US Treasuries to a wider range of institutional investors on the XRPL.”
This partnership between Ripple and OpenEden marks a significant milestone for DeFi adoption. By offering tokenized T-bills on the XRPL, they aim to bridge the gap between traditional finance and the potential of decentralized solutions. As the market for tokenized RWAs continues to grow, this move could pave the way for increased institutional participation in the DeFi ecosystem.
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