Ethereum continues to dominate the tokenized Treasury sector with a 76% market share.
Ripple is seeking to seize a share of the tokenized US Treasury market, presently dominated by Ethereum, because the real-world asset growth reveals no indicators of slowing down.
The tokenization platform OpenEden introduced on Thursday that it’s going to begin providing tokenized U.S. Treasury payments (T-bills) on the XRP Ledger (XRPL) for the primary time.
OpenEden collects funds from traders to purchase short-term U.S. Treasury payments and different reverse repurchase agreements collateralized by Treasuries. These T-bills are transformed into digital TBILL tokens saved on the XRPL blockchain.
Anybody who needs to mint these tokens should bear stringent Know Your Buyer (KYC) and Anti-Cash Laundering (AML) checks.
“OpenEden has attracted a variety of institutional purchasers, together with foundations, company treasuries, and buy-side funds, contributing to a secure and diversified person base,” mentioned Jeremy Ng, co-founder at OpenEden.
T-bills are short-term debt devices issued by the U.S. Division of the Treasury. Consumers of T-bills are primarily lending cash to the federal government for a brief interval, often just a few weeks to a yr. These payments are thought of one of many most secure investments as a result of they’re backed by the total religion and credit score of the U.S. authorities.
Tokenization refers to changing the worth or possession of a bodily asset right into a digital token that may be simply traded on a blockchain. As an alternative of holding a conventional T-bill certificates, traders can maintain a digital token that represents possession.
In keeping with information from Dune shared by analysis agency 21.co., Ethereum dominates the tokenized Treasury house with a 76% market share, supporting quite a lot of protocols reminiscent of Securitize, Ondo Finance, Hashnote, Superstate, and OpenEden, which collectively handle over $1.48 billion in property. The Stellar blockchain instructions a 21% market share, used primarily by Franklin Templeton. Mantle has captured a 1.7% share, whereas different blockchains like Polygon, Avalanche, and Base every have lower than a 0.5% share.
Ripple can be allocating $10 million to OpenEden’s TBILL tokens.
“That is half of a bigger fund that Ripple will allocate to tokenized T-bills supplied by OpenEden and different issuers,” Ripple mentioned.
OpenEden will enable customers to mint TBILL tokens utilizing stablecoins, together with Ripple’s USD stablecoin, which is slated to launch later this yr.
Actual World Asset Growth
The demand for tokenized US Treasury debt and authorities securities has soared this yr, with their market capitalization surpassing $1.8 billion throughout blockchains like Ethereum, Stellar and Arbitrum.
BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) is the most important fund holding $521.02 million in tokenized Treasuries. Franklin Templeton’s OnChain U.S. Authorities Cash Fund (BENJI) holds $401.98 million.
In the meantime, OpenEden’s TBILL has surged 55% previously 30 days and reached an all-time excessive of $85 million in property underneath administration (AUM), as per Dune information. OpenEden launched TBILL in April 2023. The corporate touts annualized yields of round 5.02%.
