XRP News Today: Guggenheim Launches Digital Commercial Paper on XRP Ledger, Backed by U.S. Treasuries

A Guggenheim subsidiary has launched a digital commercial paper (DCP) platform on the XRP Ledger, marking a significant advancement in the tokenization of real-world assets (RWAs). This digital commercial paper, backed by U.S. Treasuries, has received a Prime-1 rating from Moody’s, the highest rating available for a short-term debt instrument. The DCP is issued through a bankruptcy-remote special purpose vehicle (SPV) established by Guggenheim Treasury Services, ensuring robust investor protections. The asset is tokenized and managed through the Zeconomy platform, which provides comprehensive digital asset governance and integration services.

The launch of DCP on the XRP Ledger leverages the network's faster settlement, lower transaction costs, and 24/7 accessibility, modernizing the issuance and transaction of commercial paper. This expansion builds on the initial launch of DCP in September 2024, which has already processed over $280 million in issuance. The DCP is fully backed by maturity-matched U.S. Treasury securities and is offered daily at custom maturities of up to 397 days. This move addresses critical pain points in international trade, where traditional settlement processes can take days and involve significant operational overhead. By leveraging DCP in conjunction with real-time payments systems, corporations can lower costs, accelerate settlement, and offer greater transparency across their network of suppliers.

Markus Infanger, Senior Vice President of RippleX, highlighted the significance of this development, stating that the financial industry is at a tipping point where tokenization is transitioning from experimentation to production. Institutions are increasingly looking to deploy blockchain technology at scale to support regulated financial products. The inception of DCP on the XRPL exemplifies this shift, expanding the offering of institutional financial assets on the network. The XRPL, with its efficiency, scalability, and compliance features, is well-suited to support regulated financial assets that require these attributes.

The market for tokenized real-world assets is projected to grow significantly, with bonds expected to be the leading asset in this shift. Financial institutions are turning to public blockchain technology like the XRPL to modernize operations, reduce costs, and expand access to financial markets. DCP demonstrates how regulated financial products can be efficiently issued and transacted onchain, offering an ideal solution for digital traders seeking a yield-bearing, onchain asset for collateral in their strategies.

Giacinto Cosenza, CEO at Zeconomy, emphasized that the platform delivers institutional-grade modules and a powerful toolkit that brings corporations and traditional finance participants together to solve real-world problems onchain. The expansion of DCP to the XRPL is a key marker for the future of tokenized finance, combining institutional strength with the enterprise focus of Ripple. This use case illustrates how regulated, asset-backed instruments like DCP can thrive on public blockchains at scale.

Ripple will invest in DCP as part of its broader effort to bring institutional real-world assets to the XRPL. This investment builds on Ripple’s previous initiatives in tokenized U.S. Treasuries through projects such as Ondo’s OUSG and Archax and abrdn’s money market fund. The XRPL provides the reliability needed to support institutional assets like DCP, offering fast, secure, low-cost settlement. Over the past decade, the XRPL has processed over 3.3 billion transactions without failure or security breach, supporting over six million active wallets with a network of over 200 validators.

DCP is currently available exclusively to Qualified Institutional Buyers (QIBs) and Qualified Purchasers (QPs) as defined under applicable securities laws. This launch on the XRPL expands Guggenheim's tokenized debt offering beyond Ethereum, where DCP first debuted in September 2024. The move underscores the growing adoption of blockchain technology in the financial sector, providing institutional investors with a new avenue for short-term debt instruments.