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Guggenheim Treasury Services, a subsidiary of Wall Street giant Guggenheim Capital, has stepped into the blockchain space with the tokenization of $20 million in commercial paper on the Ethereum blockchain.
According to a Sept. 26 announcement, the product is the first digital version of commercial paper, which is a short-term, unsecured debt instrument used by companies to cover short-term obligations. It has received Moody’s highest credit rating of P-1.&nbsp;
Guggenheim Treasury is one of the largest platforms for asset-backed commercial paper (ABCP) managers. According to the company, it has issued and redeemed more than $10.3 trillion of ABCP over the past 27 years.&nbsp;
The issuance was made through Zeconomy’s AmpFi.Digital platform, a blockchain protocol designed for trading and governance of tokenized securities. 
Once issued, the digital commercial paper will be traded on the onchain platform, similar to traditional commercial papers in over-the-counter markets — in fractionalized form and with faster settlements.
“As clearly demonstrated by the ETFs approval and the growth of the tokenization space, there is a massive demand for these digital assets,” Giacinto Cosenza, CEO of Zeconomy, said in a statement. 
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/hong-kong-launches-ehkd-plus-tokenization" rel="" target="_self" text="null" title="https://cointelegraph.com/news/hong-kong-launches-ehkd-plus-tokenization">Hong Kong’s e-HKD project expands into tokenization, programmability</a>
Tokenized government securities have grown to $1.9 billion in assets under management over the past few years, according to data from 21Shares available on Dune Analytics. 
Asset manager BlackRock <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/blackrock-begins-asset-tokenization-launch-digital-liquidity-fund" rel="" target="_self" text="null" title="https://cointelegraph.com/news/blackrock-begins-asset-tokenization-launch-digital-liquidity-fund">holds the largest securities asset fund</a> onchain, with over $522 million worth of tokenized securities at the time of writing.&nbsp;
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 <img alt="Wall Street’s Guggenheim Treasury tokenizes $20M paper on Ethereum" name="" src="https://s3.cointelegraph.com/uploads/2024-09/01922f6c-1fd8-74ac-af37-8fa07e62c6bd">
 <figcaption style="text-align: center;">
 Source: 21Shares/Dune Analytics
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</figure>
A recent report by decentralized oracle provider Chainlink estimates that the global tokenized asset market <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/chainlink-forecasts-10-trillion-tokenized-asset-market-by-2030" rel="" target="_self" text="null" title="https://cointelegraph.com/news/chainlink-forecasts-10-trillion-tokenized-asset-market-by-2030">could surge to $10 trillion by 2030</a>, driven by institutional adoption, blockchain integration and regulatory progression. 
According to the report, the current value of tokenized assets sits at approximately $118.57 billion worldwide, with the Ethereum network holding 58% of all tokenized assets.
A growing number of players are exploring tokenization’s use cases. The Depository Trust &amp; Clearing Corporation has recently completed its United States Treasury Collateral Network pilot project. The project <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/blockchain-pilot-tokenized-usts-dtcc" rel="" target="_self" text="null" title="https://cointelegraph.com/news/blockchain-pilot-tokenized-usts-dtcc">brought together 26 market participants</a> to carry out 100 transactions using “digital twins” of Treasury bonds (USTs) on the Canton Network.
Magazine:&nbsp;<a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/block-by-block-blockchain-technology-transforming-real-estate-market/" rel="" target="_self" text="null" title="https://cointelegraph.com/magazine/block-by-block-blockchain-technology-transforming-real-estate-market/">Block by block: Blockchain technology is transforming the real estate market</a>

Wall Street’s Guggenheim Treasury tokenizes $20M paper on Ethereum

Cointelegraph

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