Guggenheim Treasury Securities (GTS), a subsidiary of economic advisory agency Guggenheim Capital, has issued $20 million price of Digital Industrial Paper (DCP) on Ethereum.
DCP obtained a P-1 credit standing from Moody's.
Based on a September 26 launch, Guggenheim will launch the doc by way of a blockchain platform developed by Zeconomy known as AmpFi.Digital, which gives tokenization companies to certified traders.
Giacinto Cosenza, CEO of Zeconomy, mentioned:
“With tens of billions of {dollars} locked in DeFi and company treasuries, we’re excited to companion with GTS to handle a transparent want for extra dependable and safe blockchain options.”
The transfer comes because the token marketplace for U.S. Treasuries surpassed $2 billion in market capitalization, with participation from conventional finance heavyweights corresponding to asset managers BlackRock and Franklin Templeton.
BlackRock's tokenized fund, BUIDL, has a market cap of over $513 million, whereas Franklin Templeton's FOBXX closes at $435 million.
Moreover, AmpFi.Digital mentioned within the announcement that it goals to handle key challenges in decentralized finance (DeFi), corresponding to poor credit score high quality, excessive charges, and compliance points.
Cosenza added that the approval of crypto exchange-traded funds (ETFs) in america and the substantial development of the tokenization market this 12 months have highlighted institutional demand for crypto.
Bullish developments for Ethereum
Notably, almost $1.6 billion of all tokenized US Treasuries are issued utilizing Ethereum as infrastructure.
Along with BlackRock's BUIDL, Ondo's USDY and OUSG and Hashnote's USYC considerably improve blockchain's participation within the tokenized authorities securities ecosystem.
Moreover, CoinDesk reported on September 25 that Visa plans to create a platform that can assist institutional companies challenge fiat-backed tokens. Ethereum's infrastructure will even energy the Visa Tokenized Asset Platform (VTAP).
Solana is a rising competitor
Solana held simply 5.5% of the tokenized U.S. authorities securities market as of September 26, with $122.7 million in tokens issued on the community.
Nonetheless, Franklin Templeton and Citigroup lately introduced that they’re contemplating Solana for his or her upcoming monetary merchandise exploring blockchain expertise.
On the Solana ecosystem-focused Breakpoint occasion, Franklin Templeton revealed plans to launch a mutual fund natively on Solana. In the meantime, Citi plans to leverage the community for cash programmability by way of sensible contracts geared toward cross-border funds.
