Ripple will contribute $10 million to OpenEden’s TBILL tokens, which is part of their larger investment strategy focused on tokenized financial assets.
Ripple is adding new functionality to its XRP Ledger (XRPL) by offering tokenized US Treasury bills (T-bills) through a partnership with OpenEden, a company that specializes in tokenizing real-world assets.
This move will bring short-term US government debt to the XRPL, aiming to attract more institutional investors.
Tokenized US Treasury Bills on XRP Ledger
In a press release published on August 1, Ripple detailed their latest partnership, which will introduce US Treasury bills (T-bills) as TBILL tokens on the XRP Ledger (XRPL). Ripple will contribute $10 million to OpenEden’s TBILL tokens, which is part of their larger investment strategy focused on tokenized financial assets.
Tokenized T-bills are digital versions of US Treasury bills represented on a blockchain. They convert traditional T-bills into digital tokens that can be traded or held on blockchain platforms. These tokens are backed by actual T-bills and additional collateral, enhancing accessibility and efficiency.
This integration allows for broader access to government-backed securities within DeFi platforms, enabling more diverse investment options and enhancing liquidity.
OpenEden’s Growth and Impact
OpenEden’s TBILL tokens have reached a Total Value Locked (TVL) of $75 million, reflecting significant interest from institutional investors. These tokens have also been awarded an investment-grade “A” rating by Moody’s, marking them as the first tokenized U.S. Treasury product to receive such a rating. OpenEden’s clientele includes corporate treasuries and investment funds.
To uphold security and regulatory standards, OpenEden will enforce stringent Know Your Customer (KYC) and Anti-Money Laundering (AML) checks for all participants, ensuring high levels of compliance and protection.
Impact on DeFi
The launch of tokenized T-bills on the XRPL marks a major advancement in decentralized finance (DeFi), demonstrating how traditional financial assets can be integrated into blockchain systems. The XRP Ledger, with its features like Automated Market Makers (AMMs) and Multi-Purpose Tokens (MPT), is well-suited for real-world asset tokenization.
Ripple’s $10 million investment and the broader adoption of tokenized assets on the XRPL are anticipated to spur further innovation in blockchain technology. The partnership with OpenEden, along with Ripple’s recent collaboration with Archax, a UK-based digital asset exchange, highlight Ripple’s dedication to merging traditional finance with decentralized solutions.
XRP’s Upcoming Token Unlocks
In August, Ripple plans to release approximately $609 million worth of XRP tokens as part of a broader $1.5 billion unlock for the month. This action is part of Ripple’s regular token management strategy.
Since 2017, Ripple has routinely unlocked 1 billion XRP tokens at the beginning of each month. In June, Ripple adopted a strategic approach by re-locking 800 million XRP and selling about 300 million tokens, valued around $182.5 million. This practice of unlocking and re-locking tokens is designed to manage market impact and maintain liquidity.
The forthcoming unlock is expected to draw significant attention from investors and analysts, as it may affect XRP price and market sentiment.
next