OpenEden: Tokenizing U.S. Treasury Securities on XRPL | Ripple Invests $10 Million

Ripple has made a significant move by investing $10 million in OpenEden's tokenized U.S. Treasuries, hosted on the XRP Ledger. This strategic investment underscores Ripple's dedication to integrating real-world assets into the DeFi ecosystem.

OpenEden, renowned for its focus on RWAs, offers tokenized U.S. Treasuries backed by secure collateral and compliant with stringent regulatory standards.

With an "A" rating from Moody's and an increasing TVL, OpenEden is set to meet the rising demand for on-chain yields.

Discover how this collaboration and future plans for stablecoin integration mark a new chapter in the DeFi landscape.

OpenEden's Focus on Real-World Assets (RWA) in DeFi

On August 1, 2024, Ripple announced that "OpenEden" will provide tokenized U.S. Treasury securities on the XRP Ledger (XRPL).

OpenEden is developing a platform centered around real-world assets (RWA), aiming to deploy RWA within the DeFi space. The tokenized U.S. Treasuries are a product within OpenEden's RWA domain.

The backing assets for OpenEden's tokenized U.S. Treasuries are managed through reverse repos (securities lending transactions) collateralized by U.S. short-term securities and bonds. OpenEden claims this to be one of the safest investment options available.

Along with the announcement, Ripple disclosed that it would allocate $10 million from its fund managing U.S. Treasuries to OpenEden's tokenized U.S. Treasuries. This allocation is part of a larger fund.

OpenEden also stated its commitment to complying with KYC and anti-money laundering measures, indicating a strategy to adhere to stringent regulatory requirements.

"A" Rating from Moody's for Tokenized U.S. Treasuries

OpenEden's tokenized U.S. Treasuries received an "A" rating from Moody's in June 2024. It is the only tokenized U.S. Treasury product to receive such a rating from a credit rating agency.

According to OpenEden, the total value locked (TVL) in tokenized U.S. Treasuries has surpassed approximately $74 million, highlighting the growing demand for on-chain RWA yields.

The tokenized U.S. Treasuries on XRPL will soon be available for issuance from multiple stablecoins, including a Ripple stablecoin set to launch later this year.

In June 2024, Ripple announced a partnership with Archax, a digital asset exchange and broker regulated by the UK's Financial Conduct Authority (FCA). This collaboration is expected to bring hundreds of millions of dollars in RWA onto the XRPL over the next year. These developments indicate Ripple's increasing focus on RWA.

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