Ripple has announced joining hands with OpenEden. The objective of the partnership is to bring the US Treasury Bill to XRP Ledger. The larger initiative aims to tokenize every tangible real-world asset and traditional financial security. Ripple has also allocated $10 million in funds as part of its association with the tokenization platform.
OpenEden plans to issue the short-term US government debt as T-Bill tokens, and then invest the backed assets in short-dated US Treasury bonds along with repos, that is, a reverse purchase agreement.
One rationale for establishing the partnership is to ensure that traditional assets are issued and dispersed in a more efficient manner than their traditional mechanisms.
As of now, Ripple has confirmed the development. Ripple has not specified the commencement date of the fund allocation. On the same page, OpenEden has yet to provide a tentative commencement date.
The development comes after Ripple stated that the US banks would want to use their native digital currency following the partial victory against the US SEC. For reference, both sides are yet to reach a final verdict. Ripple’s statement dates back to mid-July 2024, when Ripple was confident about its full victory. The blockchain startup aimed to achieve a heightened level of recognition, making the use of XRP in cross-border transactions a tangible reality.
Interestingly, some members have not taken the news so well. Some reports came out stating that Bank of America approved the use of XRP for payment, and there was a deal between Ripple and the SEC.
Many members said it was either fake or an unconfirmed development.
However, Ripple has confirmed that it has actually made progress in tokenizing the US Treasury Bills. BlackRock did something similar in March this year, 2024, when it released its US Institutional Digital Liquidity Fund to back it with US Treasury Bills, cash, and a repo agreement. At that time, BlackRock released the fund on the Ethereum blockchain.
However, these emotions have yet to be reflected in XRP, the native token of Ripple. At the time of writing, it was down by 4.81%. The token has fallen in the last 24 hours, bringing its value to $0.5777. It also indicates a 4.69% reduction in the last 7 days and a 20.51% increase in the last 30 days. The XRP price prediction anticipates a 20.69% rise in the next 30 days, reaching a market price of $0.706152.
It remains to be seen whether Ripple and/or OpenEden will disclose the date of fund allocation, which was missing from their announcement at press time.
