Guggenheim Treasury Services has made a significant move by issuing $20 million of tokenized commercial paper on the Ethereum blockchain, marking the first digital version of this financial instrument.

This issuance, known as Digital Commercial Paper (DCP), was facilitated through a partnership with Zeconomy and will be traded on their AmpFi.Digital platform.

The DCP has received a P-1 credit rating from Moody's, indicating a high level of creditworthiness, which is crucial for attracting institutional investors.

Giacinto Cosenza, CEO at Zeconomy, underscored the growing demand for digital assets, particularly in light of recent ETF approvals and advancements in tokenization.

The trend of tokenizing traditional financial instruments, often referred to as real-world assets (RWA), is gaining traction among traditional finance firms, with Guggenheim being a notable player.

The tokenized U.S. treasuries market has surpassed $2 billion, with major asset managers like BlackRock and Franklin Templeton participating actively.

Guggenheim, which manages $300 billion in assets, has a history of engaging with the crypto market, including investments in Bitcoin-related funds.

This transaction follows a similar issuance of digital commercial paper by Siemens AG, which was facilitated by JPMorgan's Onyx platform, highlighting a growing trend in the market.

The overall RWA market has reached a capitalization of $12 billion, which includes $2 billion in tokenized U.S. government securities, reflecting the increasing integration of blockchain technology in finance.

The issuance of the DCP targets qualified investors, indicating a strategic approach to expanding the market for tokenized financial instruments.

A report by Chainlink predicts that the global tokenized asset market could grow to $10 trillion by 2030, driven by institutional adoption and blockchain integration.

Currently, the total value of tokenized assets worldwide is approximately $118.57 billion, with the Ethereum network accounting for 58% of this market.