Ripple Ventures into Tokenized US Treasury Market with OpenEden Partnership

Ripple is set to challenge Ethereum's dominance in the tokenized US Treasury market, as the momentum behind real-world asset (RWA) tokenization continues unabated.

On Thursday, the tokenization platform OpenEden announced a pioneering move to offer tokenized U.S. Treasury bills (T-bills) on the XRP Ledger (XRPL) for the first time.

OpenEden aggregates investor funds to purchase short-term U.S. Treasury bills and reverse repurchase agreements secured by Treasuries. These T-bills are then transformed into digital TBILL tokens, which are stored on the XRPL blockchain.

To mint these tokens, investors must pass rigorous Know Your Customer (KYC) and Anti-Money Laundering (AML) protocols.

“OpenEden has successfully attracted a diverse array of institutional clients, such as foundations, corporate treasuries, and buy-side funds, leading to a robust and varied user base,” said Jeremy Ng, co-founder of OpenEden.

T-bills, issued by the U.S. Department of the Treasury, are short-term debt instruments that represent loans to the government for periods ranging from a few weeks to a year. These bills are considered one of the safest investments, backed by the full faith and credit of the U.S. government.

Tokenization involves converting the value or ownership of a physical asset into a digital token, which can be easily traded on a blockchain. Instead of holding a traditional T-bill certificate, investors can now hold a digital token that represents ownership.