Ripple to Allocate $10 Million in Tokenized US Treasury Bonds on XRP Ledger

Payment network Ripple will allocate $10 million to a tokenized version of U.S. Treasury bills (T-bills) that will be made available for the first time on the XRP Ledger.

According to the statement, short-term US government debt is offered as TBILL tokens by tokenization platform OpenEden.

The assets backing the tokens will be invested in short-term U.S. Treasury bonds and repos collateralized by U.S. Treasuries.

The tokenization of tangible real-world assets and traditional financial securities continues to be a rapidly growing sector of the crypto industry. Tokenization allows traditional assets, particularly private and alternative assets, to be issued, managed, and distributed in a manner that is considered more efficient than their off-chain counterparts.

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BlackRock, the world’s largest fund manager by assets under management, launched the USD Institutional Digital Liquidity Fund on the Ethereum blockchain in March, backing it with U.S. Treasury bonds, repo agreements and cash.

Ripple’s allocation is part of a larger fund the company will allocate to tokenized T-bills issued by OpenEden and other unspecified issuers. Neither OpenEden nor Ripple Labs specified a date for the allocation of the fund in the statement.

XRP Ledger (XRPL) is an open-source blockchain that uses the cryptocurrency XRP to facilitate global financial transfers and currency exchanges.

As of Thursday, there were over $780 million locked in tokenized versions of U.S. Treasury bonds, according to data tracking platform rwa.xyz.