Guggenheim Treasury Securities (GTS), a subsidiary of monetary consulting agency Guggenheim Capital, has issued $20 million price of Digital Industrial Paper (DCP) on Ethereum.
The DCP acquired a P-1 credit standing from Moody’s.
In response to a Sept. 26 assertion, Guggenheim will difficulty the paper through a blockchain platform developed by Zeconomy known as AmpFi.Digital, which presents tokenization providers for certified traders.
Zeconomy CEO Giacinto Cosenza acknowledged:
“With tens of billions of dollars locked in DeFi and corporate treasuries, we are thrilled to partner with GTS to address a clear need for more trusted and secure blockchain solutions.”
The transfer comes because the tokenized US treasuries market surpassed $2 billion in market cap, with the participation of conventional finance heavyweights resembling 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 resembling 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 companies difficulty fiat-backed tokens. Ethereum’s infrastructure may also 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 know-how.
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 way of good contracts aimed toward cross-border funds.
