XRPL Tokenization Gains Traction With Treasuries and Commercial Paper Launches

Key Takeaways

• Ripple’s XRP Ledger (XRPL) is gaining traction as a tokenization platform.
• Ondo Finance has deployed its flagship money market fund, OUSG, on XRPL.
• Guggenheim has also issued Digital Commercial Paper on XRPL.

As more and more financial institutions explore real-world asset tokenization, Ripple is positioning XRP Ledger (XRPL) as an ideal settlement platform.

Recent product launches on the blockchain include Ondo Finance’s tokenized treasuries and Guggenheim Capital’s new Digital Commercial Paper (DCP) offering .

Ondo Finance Branches Out to XRPL

Launched in February 2023, Ondo’s OUSG (Ondo Short-Term U.S. Government Treasuries) was one of the first tokenized money market funds to gain mainstream adoption.

At first, OUSG was only issued on the Ethereum mainnet. But Ondo later added support for Polygon, Solana, and, as of Wednesday, June 11, XRPL.

The Role of Stablecoins

The move into the XRP ecosystem will enable Ondo to offer minting and redemption via Ripple’s RLUSD stablecoin.

Unlike traditional payments, stablecoins allow tokenized fund shares to be issued and redeemed instantly, 24 hours a day. 

To fully realize the potential of tokenization, Ondo has increasingly sought to integrate stablecoins. For example, in 2024, it transferred most OUSG reserves to BlackRock’s BUIDL to take advantage of 24/7 liquidity between BUIDL and USDC.

The company’s latest partnership with Ripple is analogous to the deal between BlackRock and Circle, where Ripple provided liquid RLUSD reserves to fund stablecoin redemptions.

Guggenheim’s Digital Commercial Paper

If Ondo has been instrumental in the growth of tokenized money market funds, Guggenheim is attempting to effect the same transformation in the commercial paper market. 

Like Ondo, Guggenheim’s first foray into tokenization deployed assets on Ethereum via the Zeconomy platform. But with its enterprise focus and significantly higher throughput, XRPL is arguably a much better choice.

While Ondo’s money market fund is mainly aimed at retail investors, DCP is positioned as an efficient treasury management solution for global businesses.

Commercial paper plays a key role in trade finance, helping large companies meet short-term funding requirements that arise from buying or selling goods. 

Because tokenized asset transactions settle in real time, DCP could help reduce friction in cross-border trade and streamline complex payment flows.