- A Digital Commercial Paper under Guggenheim Treasury Services administration is now live on Ripple’s XRP Ledger.
- The XRP ledger offers faster settlements, lower transaction costs, and 24/7 accessibility, modernizing the commercial paper infrastructure.
- Rising adoption and utility could boost the XRP use case, supporting a bullish thesis for the token.
A Digital Commercial Paper (DCP), a fixed-income asset, is launched on Ripple’s XRP Ledger (XRPL), a public blockchain. The first native issuance of digital commercial paper on XRPL, administered by the Guggenheim Treasury Services, is tokenized, issued, and managed by Zeconomy. This marks an increased adoption of the XRPL at an institutional level, opening avenues for further use cases while hinting at a potential surge in the XRP token.
The modernized DCP infrastructure with XRPL and Zeconomy
The $280 million worth of Digital Commercial Paper (DCP) in issuance expands to the XRP Ledger (XRPL) to transform the current infrastructure of commercial paper issuance, transactions, and integration within global treasury and liquidity systems.
Notably, the US Treasury Securities with matching maturities are utilized to back the DCP, with custom maturities extending to 397 days. With US Treasury Securities serving as a placeholder for collateral, Moody’s, a US-based credit rating agency, classifies the DCP as a Prime-1 asset, the highest rating available for a short-term debt instrument.
Guggenheim Treasury Services ensures investors’ protection by issuing the DCP through a bankruptcy-remote special purpose vehicle (SPV), Great Bridge Capital Company. The issued DCP is then tokenized and managed on the Zeconomy platform.
“Zeconomy’s platform delivers institutional-grade modules and a powerful toolkit that brings corporations and traditional finance participants together to solve real-world problems onchain,” said Giacinto Cosenza, CEO at Zeconomy.
For institutions, a highly efficient treasury management solution is available on Ripple’s XRP Ledger, featuring cross-border payment services. Surprisingly, XRPL has achieved a remarkable feat by processing over 3.3 billion transactions without a single failure or security breach since its inception in 2012, while supporting over six million active wallets through a network of over 200 validators.
“The inception of DCP is a prime example of this shift, and it expands the offering of institutional financial assets coming to the XRPL. The XRPL is the backbone, built to support regulated financial assets that require the efficiency, scalability, and compliance features global markets need,” said Markus Infanger, Senior Vice President of RippleX.
Ripple to invest in Digital Commercial Paper
To expand its institutional Real-World Assets (RWAs) offerings on the XRPL, Ripple will invest in DCP and demonstrate its support for a frontier of tokenized assets.
Notably, a market report from the Boston Consulting Group (BCG) and Ripple, the RWA segment market capitalization could grow to $18.9 trillion by 2033, up from $600 million in 2025.
Currently, the opportunity to invest in DCP is exclusively limited to Qualified Institutional Buyers (QIBs) and Qualified Purchasers (QPs) under applicable securities laws.
XRP holds weekly gains amid increased adoption
Ripple’s XRP holds above the 50-day Exponential Moving Average (EMA) at $2.26 with a long-tailed candle on Tuesday reflecting bullish support at lower levels. At the time of writing, XRP trades at $2.30 as the headwinds fade.
Undermining a triangle pattern breakdown, the reversal in XRP targets the $2.58 resistance, the highest closing price in May.
The positive crossover in the Moving Average Convergence/Divergence (MACD) indicator on the daily chart signals a trend reversal as the MACD and signal lines rise towards the zero line.
The Relative Strength Index (RSI) at 53 turns flat after surfacing above the halfway line, suggesting a recovery in bullish momentum. With room for growth before hitting the overbought boundary, the indicator supports bullish potential in XRP.
XRP/USDT daily price chart. Source: Tradingview
However, a closing below the 50-day EMA could extend the correction to the 200-day EMA at $2.09.