XRP News Today: Guggenheim Launches DCP on XRP Ledger, $280M Issued on Ethereum

Ripple has achieved a significant institutional victory with the launch of Guggenheim Treasury Services' flagship on-chain Digital Commercial Paper (DCP) product on the XRP Ledger. This development marks a substantial milestone for Ripple, demonstrating the growing acceptance and integration of blockchain technology within traditional financial institutions. Guggenheim's decision to utilize the XRP Ledger for its digital commercial paper underscores the ledger's reliability, security, and efficiency in handling financial transactions. This move is expected to pave the way for other major financial players to explore and adopt blockchain solutions, further solidifying Ripple's position in the financial technology sector.

Initially launched on Ethereum last September, Digital Commercial Paper (DCP) is a kind of fixed-income asset secured by U.S. Treasuries and rated Prime-1 by Moody’s — the highest rating available for such instruments. Firms issue commercial paper when they need to raise funds for their immediate operational needs, such as payroll or other short-term financial obligations. The product is fully backed by maturity-matched US Treasuries with customized maturity options of up to 397 days. DCP is now fully tokenized and ready for real-time finance on the XRP Ledger, with the move being managed through the Zeconomy platform.

Markus Infanger, Senior Vice President of RippleX, highlighted that as part of the collaboration, Ripple would explore its use for cross-border payments, including potential purchases with Ripple’s dollar-pegged stablecoin, RLUSD. “We’re at a tipping point where tokenization is evolving from experimentation to production in global financial markets,” Infanger said in a statement. Since Guggenheim made DCP available on the Ethereum blockchain, it has processed over $280 million in issuance. For a new, tokenized financial product, this figure signals notable demand from institutional investors for these blockchain-based real-world assets.

With the rolling out of DCP on the XRPL, Guggenheim will leverage the network’s real-time settlement, low transaction fees, and round-the-clock accessibility, modernizing the issuance, transaction, and incorporation of commercial paper into global treasury and liquidity systems. Ripple will invest $10 million in the DCP product as part of its wider effort to bring institutional real-world assets to the XRPL. The company has already invested in tokenized treasuries through projects such as Ondo’s OUSG and Archax.

The collaboration between Ripple and Guggenheim highlights the potential of blockchain technology to revolutionize traditional financial processes, making them more transparent, secure, and efficient. As more institutions recognize the benefits of blockchain, Ripple is poised to play a pivotal role in shaping the future of digital finance. This development not only validates Ripple's technology but also sets a precedent for other financial institutions to follow, potentially leading to broader adoption of blockchain solutions in the financial sector.