Ripple to allocate $10 million to tokenized U.S. T-bills on XRP Ledger

Ripple will allocate $10 million to tokenized U.S. Treasury bonds that Asia’s largest tokenization platform OpenEden plans to issue on the XRP Ledger.

According to a press release on Thursday, this will be the first time that US Treasury Bonds and short-term US government securities backed by collateralized reserve repurchases will be available to XRP (XRP) holders on the XRP Ledger.

Ripple to announce fund to invest in tokenized assets

Ripple stated in its press release that its investment in OpenEden’s tokenized assets will be through a newly created fund. While the company did not disclose specific details about the fund, it did state that $10 million from this fund will be invested in OpenEden’s TBILL tokens.

This investment is part of a broader strategy that Ripple is pursuing with respect to tokenized treasury bonds and the broader Real World Assets (RWA) market.

“OpenEden’s tokenized U.S. Treasury bonds represent another exciting example of how all kinds of real-world assets are being tokenized to create utility and new opportunities,” said Markus Infanger, senior vice president of cryptocurrency at RippleX.

RippleX Senior Vice President noted that the introduction of treasury bills on the XRP Ledger strengthens the growing RWA tokenization market.

Print TBILL with stablecoins

OpenEden, which has over $75 million in total U.S. Treasury bonds, announced that users will be able to mint TBILLs using stablecoins. This will include Ripple USD, a stablecoin pegged to the U.S. dollar that Ripple plans to launch later this year.

The best stablecoins on the market right now are Tether’s USDT and Circle’s USDC.

Real world asset market

Tokenization is a growing market as more financial securities and other real-world assets are brought onto the chain. The benefits of blockchain technology have attracted major players, including BlackRock, which is bringing millions of dollars worth of traditional assets onto the chain.

As Ripple prepares to issue its first tokenized US Treasury bonds, the company has gained momentum in the RWA space with recent developments.

According to Team Ripple, XRP Ledger’s support for automated market makers, lending protocols, native oracles, and decentralized identifiers are some of the features that make the open-source blockchain important for RWA and DeFi markets.