According to our recent analysis, the asset could soon break the $2.6 level and subsequently hit $5.5. Meanwhile, another analyst expects the asset to explode by 5x, as explored by CNF in a recent discussion.
Guggenheim and Ripple’s Partnership
Guggenheim and Ripple have teamed up to bring a US Treasury-backed fixed-income asset to the XRP Ledger (XRPL). Guggenheim has issued and redeemed $10.3 trillion of Asset-Backed Commercial Paper (ABCP) in the last 27 years.
Guggenheim, a reputable investment manager in the US, has announced a strategic partnership with Ripple to effectively expand its digital commercial paper offering. According to the press statement, this development highlights the growing relationship and the commitment to bridge the crypto-native enterprise and traditional finance.
This collaboration occurs between the blockchain company and Guggenheim Treasury Services, a subsidiary of Guggenheim. Under the terms, XRP Ledger (XRPL) would host a “US Treasury-backed fixed-income asset.” Additionally, Ripple is expected to allocate $10 million into the asset.
Further explaining the collaboration, RippleX executive Markus Infanger highlighted that Ripple’s stablecoin RLUSD would play a crucial role in ensuring the availability of the commercial paper product. RLUSD has powered real-world finance and crypto integration since its inception, with its market cap currently surpassing $393 million. Our research suggests that this product is fully supported by the US Treasury.
Guggenheim’s Earlier Moves and Ripple’s Role in Asset Tokenisation
Guggenheim’s significant moves within the blockchain ecosystem are not new. In 2024, it dramatically entered the space by tokenising $20 million in commercial paper on the Ethereum blockchain, marking the first digital version of commercial paper. This has caught the attention of XRP Lawyer Bill Morgan, who lauded it as a big win for XRPL.
Guggenheim Treasury has positioned itself among the largest ABCP managers globally, successfully issuing and redeeming over $10.3 trillion of ABCP over the last 27 years via Zeconomy’s AmpFi.Digital platform. Zeconomy CEO Giacinto Cosenza remarked that its success has been due to the demand for digital assets.
As shown by ETF approvals and the growth of tokenisation, there is massive demand for these digital assets. Ripple has also played a key role in tokenisation through groundbreaking partnerships and initiatives. Ripple partnered with Ondo Finance to bring tokenised U.S. Treasury securities to XRPL, integrating a $185 million US Treasury token, OUSG, into the blockchain network.
In 2024, Ripple teamed up with Archax, a UK-based company, to introduce a tokenised money market fund to the XRP Ledger, investing $5 million in Lux Fund, which is expected to bring years of experience in institutional-grade blockchain solutions.
XRPL has largely been utilised for tokenisation and has enabled the trading of tokenised assets without the need for special contracts. Recently, XRPL powered Dubai’s first government-issued real estate digital asset, ensuring title deeds are securely minted and recorded on-chain, which could influence the rapid growth of Dubai’s tokenised real estate market, expected to reach $16 billion by 2033.
The recent partnership with Guggenheim has marginally impacted XRP’s price, recording almost 2% gains on its daily price chart to trade at $2.3.
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