Guggenheim Treasury Services, part of the major U.S. investment company Guggenheim Capital, has launched a new financial product called Digital Commercial Paper (DCP) on Ripple’s XRP Ledger.
This product allows institutional investors to purchase short-term debt guaranteed by U.S. Treasury bonds. First debuted on the Ethereum blockchain in September 2024. DCP has been issued valued over $280 million since then.
Now, DCP will also be available on the XRP Ledger (XRPL), a public blockchain known for fast, low-cost transactions. To support this move, Ripple is investing $10 million into the DCP product, according to RippleX executive Markus Infanger.
Ripple is also thinking ahead. The company may use this digital debt product in its payments system and possibly allow purchases using Ripple’s upcoming stablecoin. This could make it easier and faster to use digital debt in everyday transactions.
The fintech company Zeconomy developed the platform that is used to create and administer the DCP. With terms that can be altered for up to 397 days, each token represents an actual U.S. Treasury bond that matures concurrently with the digital version.
This step reflects a more general trend whereby big financial firms including BlackRock, Franklin Templeton, and Galaxy Digital are looking at tokenization of real assets. These assets are being put on blockchains to increase investor access, enable quicker settlement, and simplify trade.
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