Guggenheim Treasury Services and Zeconomy Tokenize $20 Million in Commercial Paper on Ethereum Blockchain
Financial services giant Guggenheim Treasury Services, in partnership with blockchain platform Zeconomy, has successfully issued $20 million of tokenized commercial paper on the Ethereum blockchain. This innovative move highlights the increasing intersection between traditional finance and the digital asset space.
Zeconomy CEO Giacinto Cosenza expressed optimism about the growing demand for digital assets, citing the success of crypto ETFs as a testament to this trend. He emphasized the importance of secure blockchain solutions in meeting this demand.
The tokenization of commercial paper is part of a larger trend in the crypto industry, with real-world assets (RWA) becoming a popular area for traditional finance firms to explore. The market for tokenized assets has reached a significant $12 billion market capitalization, including $2 billion in tokenized U.S. government securities.
Guggenheim’s foray into RWA marks a new direction for the firm, which manages over $300 billion in assets. Despite this being a new venture, Guggenheim has previously shown interest in the crypto space through investments in Grayscale Bitcoin Trust and other digital assets.
The commercial paper issued by Guggenheim and Zeconomy received a top credit rating of P-1 from Moody’s Investors Service, reflecting the high quality of the instrument. Commercial paper is a form of short-term, unsecured debt commonly used by corporations for financing needs.
Overall, the collaboration between Guggenheim Treasury Services and Zeconomy underscores the growing integration of blockchain technology and traditional finance, paving the way for more innovative financial solutions in the future.
