Guggenheim Partners with XRP Ledger to Expand $280M Digital Debt Offering

Guggenheim Treasury Services is issuing US Treasury-backed digital commercial paper on the XRP Ledger, marking the first native fixed-income product on the blockchain. The $280 million DCP token has processed over $280 million in volume since its launch on Ethereum in September 2024, offering custom maturities of up to 397 days. Ripple will invest $10 million in DCP and may support RLUSD purchases.

Guggenheim Treasury Services, a subsidiary of Guggenheim Capital, has expanded its Digital Commercial Paper (DCP) offering to the XRP Ledger, marking the first native fixed-income product on the blockchain. The $280 million DCP token, initially launched on Ethereum in September 2024, has processed over $280 million in volume since its inception. This move signifies a significant shift in the integration of blockchain technology within institutional finance.

The DCP, fully backed by maturity-matched U.S. Treasury securities, offers custom maturities of up to 397 days. It is issued through a bankruptcy-remote special purpose vehicle (SPV), Great Bridge Capital Company, ensuring investor protections. The asset has received a Prime-1 rating by Moody's, the highest rating available for a short-term debt instrument.

On the XRP Ledger, DCP will leverage the network's fast settlement, low transaction costs, and round-the-clock accessibility, modernizing the issuance, transaction, and integration of commercial paper into global treasury and liquidity systems. Ripple will invest $10 million in DCP as part of its broader effort to bring institutional real-world assets to the XRPL [1].

Markus Infanger, Senior Vice President of RippleX, stated, "We’re at a tipping point where tokenization is evolving from experimentation to production in global financial markets. Institutions are no longer asking if blockchain technology can support regulated financial products, they’re asking how they can deploy them at scale. The inception of DCP is a prime example of this shift, and it expands the offering of institutional financial assets coming to the XRPL" [1].

Giacinto Cosenza, CEO at Zeconomy, added, "Zeconomy’s platform delivers institutional-grade modules and a powerful toolkit that brings corporations and traditional finance participants together to solve real-world problems on-chain. 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" [1].

This initiative underscores the growing preference for the XRP Ledger in delivering efficient, cost-effective financial instruments, enhancing liquidity and cross-border transaction capabilities [2]. The adoption of XRP Ledger for digital commercial paper issuance has garnered positive attention from credit rating agencies, with Moody's affirming the high creditworthiness of the DCP product. This endorsement enhances institutional confidence, signaling that blockchain-based financial instruments can meet rigorous compliance and risk assessment criteria [2].

The success of Guggenheim’s digital commercial paper issuance may encourage other financial institutions to explore blockchain-based solutions for capital raising, liquidity management, and cross-border transactions. Continued collaboration between blockchain innovators and traditional finance entities will be essential to unlocking the full potential of these technologies [2].

References:
[1] https://sg.finance.yahoo.com/news/guggenheim-treasury-services-issue-digital-104716659.html
[2] https://en.coinotag.com/guggenheim-explores-digital-commercial-paper-on-xrp-ledger-signaling-potential-institutional-blockchain-shift/