Guggenheim Treasury Services has launched Digital Commercial Paper (DCP) on the XRP Ledger (XRPL). This marks the first native issuance of digital commercial paper on the XRPL. DCP is a fixed income asset secured by U.S. Treasuries and rated Prime-1 by Moody’s.
It is administered by Guggenheim Treasury Services and tokenized and managed through a platform. DCP offers custom maturities of up to 397 days. With over $280 million of volume to date, DCP is exclusively available to qualified institutional buyers and purchasers.
The launch of DCP on XRPL aims to enhance efficiency and accessibility in the issuance and transaction of commercial paper. The XRPL offers fast settlement capabilities, low transaction costs, and 24/7 accessibility. This expansion to the XRPL builds on DCP’s initial launch in September 2024.
Expanding DCP to the XRPL
DCP is fully backed by maturity-matched U.S. Treasury securities. It is issued through a bankruptcy-remote special purpose vehicle (SPV), Great Bridge Capital Company, established by Guggenheim Treasury Services to ensure investor protections.
On the XRPL, DCP offers institutional clients a highly efficient treasury management solution that can be seamlessly integrated into existing cross-border payment flows. Markus Infanger, Senior Vice President of RippleX, said, “We’re at a tipping point where tokenization is evolving from experimentation to production in global financial markets. Institutions are no longer asking if blockchain technology can support regulated financial products; they’re asking how they can deploy them at scale.
The inception of DCP is a prime example of this shift.”
Ripple is investing in DCP as part of its broader effort to bring institutional real-world assets to the XRPL. This builds on Ripple’s investment in tokenized U.S. Treasuries through projects such as Ondo’s OUSG and Archax and abrdn’s money market fund. DCP offers an efficient and secure solution for digital traders seeking a yield-bearing, on-chain asset to use as collateral in their strategies.
The news underscores the accelerated pace at which digital finance is evolving, with blockchain technology playing a critical role in the modern financial ecosystem.