- Guggenheim’s DCP is now live on XRPL, backed by Treasurys and rated Prime-1 by Moody’s.
- Ripple invests $10M to support DCP launch, boosting RLUSD’s institutional utility.
- Tokenized Treasurys on public blockchains surpass $7B as Wall Street embraces RWAs.
US investment manager Guggenheim has taken another step into blockchain-based finance by expanding its digital commercial paper (DCP) product through a new partnership with Ripple. Bloomberg reported that Guggenheim’s subsidiary, Guggenheim Treasury Services, will now make its US Treasury-backed fixed-income asset available on the XRP Ledger (XRPL).
Ripple will support the launch with a $10 million investment and plans to enable direct purchases using its RLUSD stablecoin. DCP is a full US Treasury-backed product with customizable maturities of up to 397 days. Guggenheim’s initiative follows its previous blockchain project of tokenizing $20 million in commercial paper on Ethereum in September 2024.
Moreover, the newest expansion utilizes the public XRPL blockchain, which has low transaction costs and rapid settlement, to make institutional investors more efficient and accessible.
RippleX executive Markus Infanger stated, “We’re at a tipping point where tokenization is evolving from experimentation to production in global financial markets.” He observed that the new product is designed to scale regulated financial instruments for institutional use, signifying a clear shift in industry adoption.
Wall Street Backs Tokenized Treasuries
Wall Street is progressively embracing the tokenization of tangible assets, including US Treasuries and money market funds. BlackRock, Franklin Templeton, and Fidelity have introduced tokenized offerings that facilitate trading and settlement on public blockchains. These innovations seek to minimize friction, enable instant settlement, and broaden access for a wider array of investors.
As per RWA.xyz, the value of tokenized US Treasurys is above $7 billion. Some of the products, such as the BUIDL fund launched by BlackRock, serve institutional clients with high minimums. Still, new protocols, such as Midas, are looking to provide a more accessible alternative. Guggenheim’s DCP, which has already handled over $280 million in volume since its initial launch, is now live on XRPL. The product holds a Prime-1 rating from Moody’s, which is the highest for short-term debt.
The platform on which DCPs are issued, Zeconomy, allows institutional purchasers to choose their maturities and to deploy DCP as part of their cross-border treasury management solutions. Zeconomy CEO Giacinto Cosenza highlighted that the expansion to XRPL merges traditional finance with blockchain, creating real-world on-chain solutions for institutions.
Ripple Expands RLUSD and Real-World Asset Access
Furthermore, Ripple is increasing its presence in real-world asset tokenization infrastructure and product investments. Its RLUSD stablecoin which launched in December, already has a supply of over $350 million and is available on Ethereum and XRPL. Ripple’s involvement in projects like Ondo’s OUSG and money market funds on Archax demonstrates a sustained push to bridge institutional finance and crypto networks.
DCP only offers its product to qualified institutional buyers and purchasers. It is a yield-bearing asset, rated highly and collateralized by the U.S. Treasuries. Issued through a bankruptcy-remote vehicle, DCP provides enhanced investor protection and meets strict regulatory standards.
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