Guggenheim Treasury Securities (GTS), a subsidiary of monetary consulting agency Guggenheim Capital, has issued $20 million value of Digital Industrial Paper (DCP) on Ethereum.
The DCP obtained a P-1 credit standing from Moody’s.
Based on a Sept. 26 assertion, Guggenheim will difficulty the paper by way of a blockchain platform developed by Zeconomy referred to as AmpFi.Digital, which affords tokenization companies for certified traders.
Zeconomy CEO Giacinto Cosenza acknowledged:
“With tens of billions of {dollars} locked in DeFi and company treasuries, we’re thrilled to companion with GTS to handle a transparent want for extra trusted and safe blockchain options.”
The transfer comes because the tokenized US treasuries market surpassed $2 billion in market cap, with the participation of conventional finance heavyweights reminiscent of asset managers BlackRock and Franklin Templeton.
BlackRock’s tokenized fund BUIDL has a market cap of over $513 million, whereas Franklin Templeton’s FOBXX trails shut with $435 million.
Moreover, AmpFi.Digital acknowledged within the announcement that it goals to handle key decentralized finance (DeFi) challenges reminiscent of poor credit score high quality, excessive charges, and compliance points.
Cosenza added that the approval of crypto exchange-traded funds (ETF) within the US and the substantial development within the tokenization market this yr highlighted institutional demand for crypto.
Bullish developments for Ethereum
Notably, practically $1.6 billion of all tokenized U.S. treasuries are issued utilizing Ethereum as an infrastructure.
Along with BlackRock’s BUIDL, Ondo’s USDY and OUSG and Hashnote’s USYC considerably improve the blockchain’s participation within the tokenized authorities securities ecosystem.
Furthermore, CoinDesk reported on Sept. 25 that Visa plans to create a platform that can assist institutional corporations difficulty fiat-backed tokens. Ethereum’s infrastructure can even energy the Visa Tokenized Asset Platform (VTAP).
Solana is a rising contender
Solana holds simply 5.5% of the tokenized US authorities securities market as of Sept. 26, with $122.7 million in tokens issued on the community.
Nonetheless, Franklin Templeton and Citigroup lately introduced they’re eyeing Solana for his or her subsequent monetary merchandise exploring blockchain expertise.
Throughout Solana’s ecosystem-focused occasion Breakpoint, Franklin Templeton revealed its plans to launch a mutual fund natively on Solana. In the meantime, Citi is contemplating tapping the community for cash programmability by sensible contracts aimed toward cross-border funds.
