Everyone across the spectrum — right from individuals to private-public entities and government agencies — has been betting on tokenization of late. Blockchain company Ripple is the latest one to jump onto the bandwagon.
Users can now access Tokenized US Treasury Bills [T-Bills] on the XRP Ledger [XRPL], thanks to the tokenization platform OpenEden.
The assets backing OpenEden’s on-chain TBILL tokens are invested in short-dated US T-Bills and reverse repurchase agreements collateralized by US treasuries. Users will have to adhere to KYC norms and AML requirements before getting hold of the tokens.
Alongside tokenization, XRPL has been making progress on several fronts lately. The XRPL EVM Sidechain, for instance, is inching towards its mainnet launch. Community voting and discussions are underway.
Ripple is all set to allocate $10 million to OpenEden’s TBILL tokens. According to the official statement, this is part of a “larger fund” that Ripple will allocate to tokenized T-Bills provided by OpenEden and other issuers.
Markus Infanger, Senior Vice President at RippleX emphasized that the latest development serves as an exhibit of how real-world assets are being tokenized to drive “utility and new opportunities.” He added,
"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.”
Data from rwa.xyz pointed out that the aggregate value of all tokenized US treasury product tokens currently stands north of $787 million, with the anticipated returns hovering above 5.1%.
While treasury-related producsts may sound mainstream, companies are leaving no stone unturned when it comes to bringing IRL assets on blockchain rails. Life insurance is one of the latest products that veered into the on-chain world.
Infineo, a company that focuses on tokenized life insurance, recently unveiled that it transferred the "first-ever" tokenized life insurance policy via the distributed ledger technology on Provenance.
To date, Infineo has minted $9.4 million worth of life insurance policies on the aforementioned blockchain’s mainnet.
