Guggenheim Launches Digital Commercial Paper on XRP Ledger, Ripple Announces EVM Sidechain

Guggenheim Treasury Services, an investment firm, has launched digital commercial paper (DCP) on the XRP Ledger (XRPL), according to a report by Bloomberg.

This product consists of tokenized promissory notes issued by the fintech startup Zeconomy, backed by U.S. Treasury bonds. It leverages the advantages of XRPL, including 24/7 trading, swift transaction execution, and minimal fees. As part of this collaboration, Ripple is investing $10 million into Guggenheim’s DCP initiative.

The issuance of these notes is managed by Great Bridge Capital Co., a special purpose vehicle created by Guggenheim to shield investors from bankruptcy risks. The product has received a Prime-1 rating from Moody’s, indicating the highest quality for money market instruments.

The introduction of the DCP on XRPL marks an expansion for Guggenheim. The company initially launched DCP on the Ethereum network in September 2024, from which approximately $20.5 million worth of notes have been issued since.

This move reflects the increasing interest from institutional players in the real world assets (RWA) market. According to RWA.xyz, as of this writing, $7.24 billion is currently locked in tokenized U.S. Treasury obligations and bonds.

To attract new projects and developers, XRPL is also set to enhance its technical capabilities. A new sidechain with EVM support is scheduled for launch in the second quarter of 2025.

The timeline for the sidechain was announced by Ripple’s CTO David Schwartz at the Apex 2025 event in Singapore, and has been confirmed by a key developer from the project, Peersyst.

This new sidechain aims to combine the low transaction costs of XRPL with the smart contract functionality of Ethereum. It is being developed by Ripple and Peersyst using the evmOS software stack.

The sidechain will connect to the main XRP Ledger network via a cross-chain bridge, utilizing the Axelar protocol for asset transfers, including wrapped XRP (wXRP), which will serve as the native token for gas payments.

Currently, the sidechain is operational in a testnet environment, with the mainnet launch anticipated following further testing and partnerships with validators.

Earlier, on April 8, alternative asset management firm Teucrium Investment Advisors introduced the first XRP ETF in the United States.