OpenEden, a well-known RWA project, has just announced the tokenization of US Treasury bonds on Ripple’s XRP Ledger.
As support for this integration, Ripple will allocate 10 million dollars in OpenEden’s TBILL tokens, which represent a form of crypto exposure to US bonds.
This is great news because until now the Vault TBILL was only available for the Ethereum and Arbitrum blockchains.
Let’s see all the details below.
XRP Ledger and tokenization: OpenEden brings US Treasury bonds to Ripple’s blockchain
OpenEden, an Asian RWA project focused on tokenization, announced today that it has introduced US Treasury bills (T-bills) on the XRP Ledger network of Ripple.
In this way, users of the RIpple infrastructure can invest in short-term US bond, taking advantage of cryptographic returns rather than fiat.
The tokenized bonds, until today available only on Ethereum and Arbitrum, represent the public debt of the United States and are guaranteed by the US Department of the Treasury.
The tokenization of T-bills on XRP Ledger is a demonstration of how institutional access to decentralized finance (DeFi) is driven by RWA assets.
The great news was announced directly by the co-founder of OpenEden “Jeremy Ng” during a speech at the Token 2049 event in Dubai.
𝗧𝗼𝗸𝗲𝗻𝗶𝘇𝗲𝗱 𝗨𝗦 𝗧𝗿𝗲𝗮𝘀𝘂𝗿𝘆 𝗕𝗶𝗹𝗹𝘀 𝗠𝗮𝗸𝗲 𝗧𝗵𝗲𝗶𝗿 𝗗𝗲𝗯𝘂𝘁 𝗼𝗻 𝘁𝗵𝗲 𝗫𝗥𝗣 𝗟𝗲𝗱𝗴𝗲𝗿 
@OpenEden_Labs is launching tokenized US Treasury bills (T-bills) on the #XRPLedger, which will be backed by short-term US T-bills and reverse repurchase… https://t.co/pvwn4XwSBU pic.twitter.com/3HSn6xEqQX
— Subjective Views (@subjectiveviews) August 1, 2024
As part of the collaboration, Ripple revealed that it will allocate 10 million dollars to invest in OpenEden’s T-bills. This amount is part of the larger 50 million dollar fund that Ripple has dedicated to better explore the sector of tokenization of US government bonds.
Regarding the news, Markus Infanger, Senior Vice President, RippleX, reported the following:
“The tokenized US Treasury bonds from OpenEden represent another exciting example of how all types of real-world assets are being tokenized to promote utility and new opportunities. Institutions are increasingly looking for where to tokenize their real-world assets, and the arrival of Treasury bonds on the XRPL powered by OpenEden strengthens the decentralized Layer 1 blockchain as one of the leading blockchains for the tokenization of real-world assets.”
We point out that those who access the Vaults of OpenEded must necessarily undergo rigorous KYC and AML checks to ensure the highest standards of security and regulatory compliance.
At the moment the yield offered by the platform is 5.02%, with a TVL of 90.6 million dollars. The price for each T-Bill is 1.06 dollars.
Tokenization of the real world (RWA): the challenge of Ripple’s XRP ledger and OpenEden
The tokenization of US Treasury bonds by OpenEden on Ripple’s XRP Ledger represents just the tip of the iceberg of a broader RWA movement.
Ripple has in fact also announced a collaboration with the exchange Archax in which the issuance of hundreds of millions of dollars of tokenized assets is planned.
Archax is one of the best regulated digital asset brokers in the United Kingdom and compliant with the Financial Conduct Authority.
Together with Ripple, it will host dozens of RWA solutions on the XRP Ledger blockchain, unlocking a still unexplored potential for the DeFi world.
It is also worth noting how XRP Ledger was designed specifically to power similar financial use cases at the institutional level.
Thanks to its proven reliability and efficiency, it provides a solid foundation for the tokenization of both US Treasury bonds and other RWA assets.
In the last ten years, XRPL has hosted over 1,000 projects, processing over 2.8 billion transactions without failures or security breaches. All while supporting over 5 million active wallets and managing a network of over 120 validators.
On the other hand, OpenEden represents the first provider of tokenized securities to receive an investment grade rating of “A” from the rating agency Moody’s.
its wide range of clients institutional has led the TVL of the protocol to soar in the short term, highlighting the interest in investments of this type.
In the future, the platform will probably offer exposure to other tokenized products, appealing to a formal audience such as treasuries, foundations, and buy-side funds.
In the meantime, OpenEden is about to open the doors to the minting of T-bills tokens through cryptographic resources of the Ripple blockchain.
As emphasized by its co-founder:
“Bringing tokenized T-bill to the XRP Ledger is the next step in our exciting journey. Buyers will be able to mint our TBILL tokens via stablecoin, including Ripple USD when it launches later this year”.
Other blockchain solutions aiming to tokenize securities in the on-chain world
Among the providers of tokenization solutions for US Treasury bonds and RWA assets, we find not only OpenEden and Ripple’s XRP Ledger platform but also other valid players.
First among all Ondo Finance, a protocol with a TVL of 571 million dollars that offers various exposures in tokenized products, including US government bonds.
Its goal is to improve transparency, efficiency, and accessibility to the global financial world.
Another very interesting project in this field is TrufeFi, a platform focused on decentralized lending in DeFi. Here too, it is possible to invest in US government bonds with a variable APY between 4% and 6%, through the tokenized product Adapt3R.
.The investment strategy of the Fund is designed to preserve capital, offer stable returns, and maintain high liquidity.
The TVL of this vault is 31.62 million dollars while all the loans originated on Truefi amount to 1.74 billion dollars.
In general, many projects, although not currently offering a tokenized investment like OpenEden, Ondo, and TrufeFi, aim to develop infrastructures capable of hosting the growing RWA phenomenon.
Among the major platforms, we highlight the presence of Chainlink, Avalanche, MakerDAO, and Synthetix. In particular, Avalanche last year launched a fund of 50 million dollars to develop new connections in this field. After 10 months, it has already seen the tokenization of mortgage loans on its blockchain thanks to the Homium project.
Even the Fund Manager BlackRock recently launched its own tokenized fund worth 500 million dollars.
The possibilities in the tokenization industry are potentially endless and currently we are in a very early phase, where primarily bonds and real estate are being tokenized.
In the future, we might witness a mass tokenization of a myriad of RWA assets, making this trend popular, which today still appears to be niche.
