OpenEden Releases Tokenized U.S. Treasury Bills Onto XRP Ledger

By Anthony • August 1, 2024 10:07 am • Comments

In a fresh press release, Ripple has announced tokenization platform OpenEden will bring US Treasury bills (T-bills) to the XRP Ledger.

T-bills are a “short-term US government debt obligation backed by the US Department of the Treasury.”

Markus Infanger, Senior Vice President, RippleX stated, “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.”

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Infanger added, “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.”

Per Ripple:

Tokenization platform OpenEden has announced that it will bring tokenized US Treasury bills (T-bills), a short-term US government debt obligation backed by the US Department of the Treasury, to the XRP Ledger (XRPL) and its users for the first time.

The tokenization of T-bills onto the XRPL is a demonstration of how institutional access to decentralized finance (DeFi) is being driven by the tokenization of traditional real-world assets (RWAs). The assets backing OpenEden’s TBILL tokens are invested in short-dated US T-bills and reverse repurchase agreements collateralized by US Treasuries. Minters are subject to stringent KYC and AML screening to ensure the highest security and regulatory compliance standards.

Ripple, the leader in enterprise blockchain and crypto solutions, will also allocate USD$10 million into OpenEden’s TBILL tokens. This is part of a larger fund that Ripple will allocate to tokenized T-bills provided by OpenEden and other issuers.

“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,” said Markus Infanger, Senior Vice President, RippleX. “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.”

Here’s what Coin Desk reported:

Payments network Ripple will allocate $10 million to a tokenized version of U.S. Treasury bills (T-bills) that will become available on the XRP Ledger for the first time.

The short-term U.S. government debt is being issued as TBILL tokens by the tokenization platform OpenEden, according to a Thursday release.

Assets backing the tokens will be invested in short-dated U.S. Treasuries and reverse repurchase agreements (repos) collateralized by U.S. Treasuries.

Repos are securities sold with an agreement to repurchase them at a higher price at a specified future date.
The tokenization of tangible real-world assets and traditional financial securities is a growing sector of the crypto industry. It allows traditional assets, especially private and alternative assets, to be issued, managed, and distributed in a way that is considered more efficient than their off-chain counterparts.

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