Key Takeaways
Major DCP issuer Guggenheim launches US Treasury-backed Digital Commercial Paper on the XRP Ledger.
At its launch on Ethereum, Guggenheim issued $20 million of DCP, which received the highest credit rating from Moody’s, P-1.
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Guggenheim Treasury Services, one of the largest and most respected asset-backed commercial paper issuers, is bringing its flagship on-chain Digital Commercial Paper (DCP) to the XRP Ledger, according to a new report from Bloomberg.Initially launched on Ethereum last September, DCP is a blockchain-powered form of commercial paper, also known as short-term, fixed-income debut instruments. Companies issue commercial paper when they need to raise quick cash for their immediate operational needs, such as payroll or other short-term financial obligations.Since Guggenheim started offering DCP on Ethereum, it has processed over $280 million in issuance, as noted in the report. For a new, tokenized financial product, the number indicates that there is genuine and considerable interest from institutional investors in these blockchain-based assets.The DCP product is fully backed by maturity-matched US Treasury bonds and offered daily through Zeconomy’s platform at customized maturities up to 397 days. When it launched on Ethereum, it received a credit rating of P-1 from Moody’s.Markus Infanger, Senior Vice President of RippleX, stated that Ripple would invest $10 million in the DCP product and explore its use for payments, including potential purchases with Ripple’s stablecoin.As of June 9, the total value locked on the XRPL stood at around $61 million, a fourfold increase from $14 million last September, following developments in Ripple’s legal battle with the SEC, according to data from DeFiLlama.The XRP Ledger currently represents a small portion of the tokenized asset landscape, with about $117 million in tokenized assets, excluding stablecoins, according to data from rwa.xyz.Ethereum remains the frontrunner in real-world asset (RWA) tokenization, with BlackRock’s BUIDL fund being a major driver of its growth.Source: rwa.xyzThe total valuation of RWA tokenization has surpassed $23 billion, up over 45% so far this year, while the number of asset holders has grown by 65%.Source: rwa.xyz
