Private equity firm Aurum Equity Partners has announced the launch of a landmark $1 billion tokenized equity and debt fund on the XRP Ledger, a blockchain closely linked to Ripple.
The fund will focus on investments in data centers across various regions, including the U.S., UAE, Saudi Arabia, India and Europe, and will be what the firm calls “the world’s first combined equity and debt tokenized fund.”
The fund is powered by tokenization technology from San Francisco-based service provider Zoniqx, which will create security tokens representing underlying financial instruments. By leveraging the XRP Ledger, Aurum is entering the realm of real-world asset (RWA) tokenization, a market that is gaining institutional interest due to the potential for improved operational efficiency and faster, around-the-clock payments. Industry reports from McKinsey, BCG, 21Shares, and Bernstein suggest the RWA market could reach trillions of dollars in the coming years.
This tokenized fund is seen as a major milestone for both XRP Ledger and Ripple Labs.
Ripple Labs President Monica Long recently outlined the company’s efforts to expand in this space, including the expected approval from New York state regulators for a US dollar stablecoin that would increase liquidity and empower institutions to tokenize and settle assets on the XRP Ledger. “Tokenizing private equity is another emerging use case for RWA, addressing the issues of illiquidity and limited access in these markets,” said David Schwartz, Ripple’s Chief Technology Officer and co-creator of the XRP Ledger.
*This is not investment advice.