According to a recent report, Guggenheim, a prominent US investment manager, is extending its digital commercial paper portfolio via a strategic alliance with Ripple. This move marks yet another significant intersection between the traditional financial sector and the world of cryptocurrencies.
With this collaboration, Guggenheim Treasury Services, a branch of Guggenheim, will introduce its US Treasury-supported fixed-income asset on the XRP Ledger, as per Bloomberg. As an integral part of the alliance, Ripple will invest $10 million in this asset.
The commercial paper product in question is fully underwritten by US Treasurys and offers personalized maturity options up to 397 days. Markus Infanger, a RippleX executive, disclosed to Bloomberg that Ripple’s RLUSD, a US dollar-pegged stablecoin, could be used to purchase this product. Since its inception in December, RLUSD’s circulating supply has crossed the $350 million mark.
This isn’t Guggenheim’s inaugural venture into the cryptocurrency realm. As Cointelegraph reported earlier, Guggenheim tokenized its $20 million commercial paper offering on the Ethereum blockchain in September 2024.
Tokenization is quickly gaining traction on Wall Street, with premier financial institutions acknowledging the advantages of trading real-world assets (RWAs) on the blockchain. Tokenization of money market funds is among the most significant trends, demonstrated by BlackRock’s BUIDL, Franklin Templeton’s OnChain US Government Money Fund, and Fidelity’s tokenized US dollar money market fund.
Blockchain-centric companies are also expanding access to tokenized assets for a broader investor base. For instance, German tokenization protocol Midas recently launched a tokenized Treasury bill on the Algorand blockchain.
Blockchain-oriented venture firm Jump Crypto has also reportedly invested an undisclosed amount in Securitize, the tokenization platform behind BlackRock’s BUIDL. To date, Securitize has aggregated over $4 billion in onchain assets, with BUIDL contributing nearly $3 billion.
