Guggenheim Partners Teams Up with Ripple to Launch Tokenized Fixed Income Products Supported by U.S. Treasury on XRP Ledger

According to a report by Bloomberg on June 10, Guggenheim Partners will introduce its fixed income investment products backed by U.S. Treasury through a new collaboration with Ripple on the XRP Ledger (XRPL).

Guggenheim's subsidiary, Guggenheim Treasury Services, will issue tokenized U.S. commercial paper on XRPL, with a maturity of up to 397 days, fully backed by U.S. Treasury, targeting institutional investors looking to invest in fixed income assets in token form.

As part of the agreement, Ripple will invest $10 million in the asset to promote its strategy of tokenization of real-world assets (RWA) in a decentralized ecosystem. This product may also support purchases using Ripple's USD stablecoin RLUSD. Since its launch in December 2023, the supply of RLUSD has exceeded $300 million, operating on both Ethereum and XRPL.

This collaboration continues Guggenheim's exploration of blockchain finance. As early as September 2024, the firm had tokenized $20 million in commercial paper on Ethereum, laying the groundwork for further research into the application of blockchain in the issuance and settlement of short-term credit products.

Currently, tokenized U.S. Treasury and money market funds are increasingly popular, with asset management companies adopting them to modernize issuance and settlement processes. Institutions like BlackRock and Franklin Templeton have launched native blockchain cash equivalent funds, while platforms like Securitize have lowered the investment threshold.

The partnership between Ripple and Guggenheim reflects that traditional financial institutions are actively embracing blockchain technology to enhance transparency, efficiency, and accessibility in the fixed income market.