Ripple Allocates $10M to Tokenized U.S. Treasury Bills on XRP Ledger
Key Takeaways:
- Ripple Allocates $10M: Ripple is dedicating $10 million to tokenized U.S. Treasury bills on the XRP Ledger.
- Security of TBILL Tokens: TBILL tokens are backed by U.S. Treasury securities and reverse repurchase agreements.
- Emerging Trend in Crypto: The tokenization of real-world assets is an increasing trend, opening up new investment avenues.
YEREVAN (CoinChapter.com) — Ripple has allocated $10 million in tokenized U.S. Treasury bills (T-bills) on the XRP Ledger. Consequently, this marks the first time such tokens are available on this platform. OpenEden is issuing these TBILL tokens. This initiative reflects a broader trend of digitizing real-world assets and financial securities in the crypto industry.
TBILL Tokens on XRP Ledger: Secured by U.S. Treasuries and Repos
The TBILL tokens leverage actual U.S. Treasury securities as backing. Specifically, they are supported by short-dated U.S. Treasuries and reverse repurchase agreements (repos). In repos, parties sell securities with a commitment to repurchase them at a higher price later. Therefore, this arrangement maintains the assets’ value.
The XRP Ledger, an open-source blockchain, facilitates these transactions using the cryptocurrency XRP. Notably, this platform is selected for its capacity to manage efficient and global financial transfers.
The Rise of Tokenized Real-World Assets in Crypto
Tokenizing real-world assets like U.S. Treasury bills has emerged as a trend in the crypto space. Consequently, this process enables the management and trading of traditional assets on blockchain platforms. As a result, this digital approach creates new opportunities for investors and institutions.
BlackRock’s Digital Fund Secures $780M in Tokenized Treasuries
In March, BlackRock, a major fund manager, launched a USD Institutional Digital Liquidity Fund on the Ethereum blockchain, backing it with U.S. Treasury bills, repo agreements, and cash. As of Thursday, the fund has locked in over $780 million in tokenized U.S. Treasuries, according to rwa.xyz.
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