Aurum Equity Partners launched a $1 billion tokenized equity and debt fund on the XRP Ledger, an enterprise-grade blockchain network linked with Ripple.
The Fund will seek investments in data centers across the US, the UAE, Saudi Arabia, India, and Europe. It has been heavily promoted as the “world’s first combined equity and debt tokenized fund” that allows investors to engage in a hybrid model by utilizing both asset classes via blockchain technology.
Aurum Launches $1B Tokenized Fund on XRP Ledger.
Aurum Equity Partners unveiled the world’s first hybrid equity and debt tokenized $1 billion Fund, powered by Zoniqx’s asset tokenization technology.
This initiative leverages the XRP Ledger, a decentralized and open-source Layer 1 blockchain, to power real-world asset tokenization for data center investments.
NEW – Tokenization of assets is happening on the XRP Ledger!
Aurum Equity Partners Launches $1 Billion Tokenized Equity and Debt Fund Using Zoniqx and XRP Ledger Technology https://t.co/K7hhiV0Dt9#xrp #xrpl #xrpledger #tokenization #ripple pic.twitter.com/QThGUJGEAN
— Tony Edward (Thinking Crypto Podcast) (@ThinkingCrypto1) October 22, 2024
The project will set up data centers across key regions such as the United States, United Arab Emirates, Saudi Arabia, India, and Europe; therefore, this has been one of the major applications of blockchain in better managing and accessing conventionally illiquid assets such as private equity and debt.
This new launch marks a vital milestone in the growth trajectory of both the XRP Ledger and Ripple Labs, proving their ambition to tap into the growing RWA tokenization market.
More recently, institutional interest in exploring Blockchain applications for classical financial instruments such as bonds and equity, operating efficiently and offering faster settlements around the clock, has caught new attention. McKinsey, BCG, and other reports forecast RWA markets to grow to trillions of dollars over the coming years.
Stablecoin to Unlock Liquidity for Tokenized Assets
Ripple is waiting for the regulatory nod from New York State to introduce its stablecoin pegged with the US dollar. This motive is to raise liquidity and, further, tokenize and settle financial assets across its XRP Ledger XRPL network.
As Ripple Labs President Monica Long says, this is all about how this stablecoin would help institutions in their goal of better asset tokenization. This will also help regarding the company’s legal turmoil with the SEC. Just recently, the US SEC said it would proceed with its Ripple Lawsuit appeals.
David Schwartz, Ripple’s Chief Technology Officer, also pointed to private equity tokenization as a key emerging use case in real-world asset tokenization that drives such essential benefits as the fight against illiquidity and restricted access to these markets.
He explained:
“Using XRPL’s ability to process transactions efficiently and securely, Aurum and Zoniqx show how real-world assets can be managed more effectively by harnessing a decentralized blockchain.”
Indeed, the functionality offered by XRPL means companies like Aurum and Zoniqx are showing how blockchain can make managing real-world assets easier.
XRP Reaches 30 Million MetaMask Users
The XRP Ledger is a decentralized, layer-1 blockchain that has been touted in the market for more than ten years with its reputation for reliability and stability. It has the ease of tokenization and exchange for both crypto-natives and real-world assets in mind.
For its robust and institutional-grade functionality, XRPL embeds features that facilitate secure, efficient, and scalable financial services.
During a $200M XRP transfer, Ripple recently revealed that the XRP Ledger partnered with MetaMask, a Web3 wallet service. By integrating XRPL Snap, MetaMask users can now engage with the Ledger from their wallets.
The integration should enable the Ledger to share MetaMask’s 30 million monthly active users, making XRP and the XRPL more accessible to developers and the retail audience.
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