Guggenheim Partners Issues $20M in Tokenized Commercial Paper on Ethereum
2024-09-30

Guggenheim Treasury Services, a subsidiary of the major financial firm Guggenheim Partners, has issued $20 million worth of tokenized commercial paper on the Ethereum blockchain, marking a significant step into the world of digital assets. 
According to a report by Helene Braun for CoinDesk, this move was confirmed by Guggenheim, although the company did not provide further details. The announcement was made by Zeconomy, the blockchain platform facilitating the transaction.
This development follows a growing trend of tokenizing traditional financial instruments, often referred to as real-world assets (RWA). Just weeks ago, Siemens AG, the German industrial giant, issued digital commercial paper via JPMorgan’s Onyx platform. According to RWA.XYZ, the tokenization of real-world assets has become a rapidly expanding niche, with the market capitalization now reaching $12 billion. This includes $2 billion in tokenized U.S. government securities, underscoring the growing appetite for digital financial products.
Zeconomy’s CEO, Giacinto Cosenza, expressed excitement over the partnership with Guggenheim, noting the rising demand for secure blockchain solutions in decentralized finance (DeFi) and corporate treasuries. He highlighted the transformative potential of tokenization, drawing parallels to the recent approval of crypto-based ETFs as evidence of growing institutional interest.
The tokenized commercial paper issued by Guggenheim carries a P-1 credit rating, the highest rating given by Moody’s Investors Service for short-term corporate debt. Commercial paper is typically unsecured and has a short maturity, often around 30 days.
While this is a new venture into the tokenization space for Guggenheim, the investment giant, with $300 billion in assets under management (AUM), is no stranger to crypto. The firm has had up to 10% exposure to the Grayscale Bitcoin Trust (GBTC) and has participated in the broader crypto ecosystem for years.
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