Guggenheim Tokenizes $20M on Ethereum

Global investment firm Guggenheim and crypto platform Zeconomy are tokenizing $20M in commercial paper, a short-term corporate debt instrument, on Ethereum.

What's the Scoop?

• Massive Demand: Zeconomy’s CEO reported “massive demand” for digital assets, linking this growth to the success of crypto ETFs.
• Top Credit Rating: Moody's Investors Service rated the commercial paper issued at P-1, the highest rating available.
• TradFi Adoption: The transaction follows Siemens AG’s recent digital commercial paper issuance on JP Morgan’s Onyx blockchain and Visa’s announcement of VTAP to allow banks to offer tokenized assets on Ethereum.

Bankless Take:  

While $20M is not a huge amount for a firm of its size, Guggenheim’s foray into tokenization demonstrates the momentum around traditional finance continuing to tap into crypto. Ethereum continues to be at the heart of these announcements, allaying fears that TradFi does not understand the value proposition of Ethereum, demonstrating that institutions have woken up to its value as a global settlement layer. While this has yet to be particularly reflected in ETH ETF flows, which continue to lag behind Bitcoin flows, more progress in this trend could turn into substantial demand for ETH.

Visa Launching Tokenized Asset Platform for Banks on Bankless

Visa unveils VTAP, a platform for banks to issue fiat-backed tokens on Ethereum. BBVA to pilot in 2025, fueling blockchains in finance.

BanklessDavid C