Guggenheim Treasury Securities (GTS), a subsidiary of financial advisory firm Guggenheim Capital, has issued $20 million worth of digital commercial paper (DCP) in ethereum.
DCP received a P-1 credit rating from Moody's.
According to a report dated September 26 statementGuggenheim will issue the document through a blockchain platform developed by Zeconomy called AmpFi.Digital, which offers tokenization services for qualified investors.
Zeconomy CEO Giacinto Cosenza stated:
“With tens of billions of dollars locked in DeFi and corporate treasuries, we are delighted to partner with GTS to address a clear need for more reliable and secure blockchain solutions.”
The move comes as the tokenized U.S. Treasury bond market surpassed $2 billion in market capitalization, with participation from traditional finance heavyweights such as asset managers BlackRock and Franklin Templeton.
BlackRock's BUIDL tokenized fund has a market capitalization of more than $513 million, while Franklin Templeton's FOBXX comes close with $435 million.
Furthermore, AmpFi.Digital stated in the announcement that it aims to address key challenges of decentralized finance (DeFi), such as poor credit quality, high fees, and compliance issues.
Cosenza added that the approval of cryptocurrency exchange-traded funds (ETFs) in the US and substantial growth in the tokenization market this year highlighted institutional demand for cryptocurrencies.
Bullish developments for ethereum
Notably, nearly $1.6 billion of all tokenized US Treasuries are issued using ethereum as infrastructure.
In addition to BlackRock's BUIDL, Ondo's USDY and OUSG and Hashnote's USYC significantly increase blockchain participation in the tokenized government securities ecosystem.
Additionally, CoinDesk reported on September 25 that Visa plans to create a platform that will help institutional companies issue fiat-backed tokens. ethereum infrastructure will also power the Visa Tokenized Asset Platform (VTAP).
Solana is a rising contender
Solana owns just 5.5% of the US tokenized government securities market as of September 26, with $122.7 million in tokens issued on the network.
However, Franklin Templeton and Citigroup recently announced that they are considering Solana for their upcoming financial products exploring blockchain technology.
During the Breakpoint event focused on the Solana ecosystem, Franklin Templeton revealed his plans to launch a mutual fund natively on Solana. Meanwhile, Citi is considering leveraging the network to program money through smart contracts intended for cross-border payments.
