Guggenheim Treasury Services and blockchain platform Zeconomy have issued $20 million in tokenized commercial paper on the Ethereum blockchain.
Zeconomy CEO Giacinto Cosenza said he sees “huge demand” for digital assets, as evidenced by the success of crypto ETFs.
Guggenheim Treasury Services, a subsidiary of financial services firm Guggenheim Partners, has issued $20 million in tokenized commercial paper on the Ethereum blockchain, its partner, blockchain platform Zeconomy, announced Thursday.
A Guggenheim spokesperson confirmed that the transaction had taken place, but declined to comment further.
The tokenization comes weeks after German industrial giant Siemens AG has issued digital commercial paper via megabank JPMorgan’s Onyx and blockchain platform SWIAT.
Tokenization of traditional financial instruments, also known as real-world assets (RWA), has become one of the hottest areas in crypto that TradFi companies are getting into lately. The niche has grown into one Market cap of $12 billion, inclusive $2 billion in tokenized US government bonds, according to research firm RWA.XYZ.
“With tens of billions of dollars locked in DeFi and corporate bonds, we are excited to partner with GTS to address a clear need for more trusted and secure blockchain solutions,” said Giacinto Cosenza, CEO of Zeconomy, in a statement.
“As is evident from the adoption of the ETFs and the growth of the tokenization space, there is tremendous demand for these digital assets, and we want to enable our partners to be at the forefront of what could be a transformative moment in the financial world are. industry,” he said.
The commercial paper was rated P-1 by Moody’s Investors Service, the highest credit rating available for such instruments. Commercial paper is short-term (less than one year, usually 30 days), unsecured debt issued by corporations.
While RWA is a new direction for Guggenheim, which has a whopping $300 billion in assets under management (AUM), the global investment firm has previously participated in the crypto ecosystem.
For years, the company’s Macro Opportunities Funds have been allowed to take up to 10% exposure to the former Grayscale Bitcoin Trust (GBTC), which converted into one of the spot bitcoin (BTC) exchange-traded funds (ETF) in January.