Guggenheim subsidiary, XRPL-based digital commercial paper issuance… Operated with U.S. Treasury bonds as collateral

CoinDesk reported that Guggenheim Treasury Services, a subsidiary of global asset manager Guggenheim Partners, will issue a Digital Commercial Paper (DCP) on Ripple's public blockchain, XRP Ledger (XRPL).

The DCP issued this time will be collateralized by U.S. Treasury bonds and will be offered only to qualified institutions and qualified investors. The tokenization, issuance, and overall management will be handled by the blockchain infrastructure platform Xeconomy.

This move is evaluated as an example of traditional financial institutions entering the blockchain-based asset management market in earnest through the tokenization of physical assets. The technical reliability and scalability of XRPL seem to have acted as the background for being chosen by institutional investors.