Guggenheim Partners Teams up with Ripple to Offer Treasury-Backed Fixed-Income Product on XRPL
Guggenheim Partners has announced a groundbreaking partnership with Ripple to bring its Treasury-backed fixed-income product to the XRP Ledger (XRPL). This collaboration, as reported by Bloomberg News on June 10, will see Guggenheim Treasury Services, a subsidiary of the renowned investment giant, offering tokenized US commercial paper with customized maturity terms of up to 397 days on XRPL.
The innovative fixed-income product is fully backed by US Treasurys and is designed to provide institutional-grade fixed-income exposure in a tokenized format. This move comes at a time when institutional interest in Ripple’s network is on the rise.
As part of the agreement, Ripple will be making a strategic investment of $10 million in the asset, demonstrating its commitment to expanding real-world asset (RWA) tokenization across decentralized ecosystems. The product may also be purchased using RLUSD, Ripple’s US dollar-pegged stablecoin, which has seen its supply exceed $300 million since its launch in December.
This partnership builds on Guggenheim’s previous venture into blockchain finance, where they tokenized $20 million worth of commercial paper on Ethereum (ETH) in September 2024. This initial experiment paved the way for further exploration into how blockchain technology can streamline the issuance, settlement, and access to short-term credit products.
The trend of tokenized Treasurys and money market funds is gaining momentum as asset managers seek to modernize distribution and settlement processes. Leading industry players like BlackRock and Franklin Templeton have already introduced blockchain-native versions of cash-equivalent funds, while platforms such as Securitize are making it easier for investors to participate in tokenized assets.
With the RWA market surpassing $10 billion in total value locked as of the end of March, it is evident that tokenized US Treasurys play a significant role in this space. The Ripple-Guggenheim partnership signifies a larger shift in the financial industry, as incumbents embrace blockchain technology to enhance transparency, efficiency, and accessibility in the fixed-income market.
This collaboration underscores the growing importance of integrating blockchain technology into traditional finance, as institutions look for ways to stay competitive and meet the evolving needs of their clients. Stay tuned for more updates on this exciting development in the world of blockchain finance.