Tokenization platform OpenEden is using Ripple’s XRP Ledger (XRPL) blockchain to launch TBILL tokens backed by tokenized U.S. Treasury bills.
Short-term U.S. government debt obligations with reverse repurchase agreements backed by the Treasury Department will be tokenized on the XRP Ledger blockchain. According to Ripple’s press release, any XRPL user will be able to mint TBILL tokens on the OpenEden tokenization platform.
Anyone willing to mint TBILL will be required to undergo an AML-compliant KYC process so that the tokens can meet regulatory and security standards.
According to Markus Infanger, Senior Vice President at RippleX, the tokenized T-bills on XRPL demonstrate how institutional access to decentralized finance (DeFi) is evolving through real-world asset (RWA) tokenization. He believes XRPL has all the necessary characteristics to provide RWAs with increased utility and open up new opportunities to utilize traditional financial instruments on the blockchain.
Ripple Labs invested $10 million in OpenEden for TBILL issuing and future RWA tokenization efforts. The press release states that the company’s investment in the DeFi platform is part of a broader strategy to support tokenization of traditional financial assets on XRP Ledger.
The market for tokenized U.S. Treasury bills exceeded $1 billion this year and, according to analysts’ forecasts, could reach $3 billion by the end of the year.
