TL;DR
- OpenEden is launching tokenized US Treasury Bills on the XRP Ledger. Users will be able to mint such products via stablecoins such as Ripple USD (when it sees the light of day later this year).
- XRP’s price is down 6% for the day, but a potential resolution in the Ripple v SEC lawsuit could positively affect its value.
Tokenized US T-Bills on the XRPL
OpenEden – a fintech company focused on bridging traditional finance and DeFi – will introduce tokenized US Treasury bills (T-bills) to the XRP Ledger (XRPL) and its users for the first time.
For its part, Ripple will create a fund to allocate $10 million to the aforementioned products. Markus Infanger, Senior Vice President at RippleX, claimed that OpenEden’s T-bills represent an “exciting example of how all types of real-world assets are being tokenized to drive utility and new opportunities.”
“Institutions are increasingly looking at where to tokenize their real-world assets, and the arrival of T-bills on the XRPL powered by OpenEden reinforces the decentralized Layer 1 blockchain as one of the leading blockchains for real-world asset tokenization,” he added.
Tokenized T-bills are digital representations of traditional US Treasury bills issued on a blockchain or distributed ledger technology platform. The process involves converting the rights to the financial products into tokens, which can then be traded, held, or transferred to digital wallets.
Not long ago, OpenEden surpassed $75 million in total value locked (TVL) for its tokenized T-bills. Speaking on the matter was co-founder Jeremy Ng:
“OpenEden has attracted a wide range of institutional clients, including foundations, corporate treasuries, and buy-side funds, contributing to a stable and diversified user base.”
He said that tokenized T-bills to the XRP Ledger are the next step in the company’s journey. Users will be able to mint such products via stablecoins, including Ripple USD (the firm’s upcoming stablecoin with a ticker RLUSD) when it goes live later this year.
XRP Price Outlook
The aforementioned initiative did not trigger a price rally for Ripple’s native token. In fact, XRP remains deep in the red, plunging by 6% on a 24-hour scale amid an overall market correction.
The picture looked much different yesterday (July 31) when the asset’s valuation tapped a four-month high of almost $0.66 while its market capitalization briefly exceeded $35 billion.
One factor possibly contributing to the latest spike is the rising expectation of a resolution on the Ripple v SEC front. American attorney Jeremy Hogan previously predicted that the case may conclude before the end of the summer, while Ripple’s CEO claimed the big news could be announced “very soon.”
In the dedicated video below, you can learn more about the lawsuit and why its outcome might cause enhanced volatility for XRP’s price:
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