Private Equity Firm Unveils $1 Billion Tokenized Fund on XRP Ledger

Aurum Equity Partners, a private equity firm, has unveiled an ambitious $1 billion tokenized fund focused on both equity and debt, set to operate on the XRP Ledger, which is closely associated with Ripple.

This innovative fund aims to invest in data centers located in various regions, including the United States, UAE, Saudi Arabia, India, and Europe. The firm has dubbed it “the world’s first combined equity and debt tokenized fund.”

To bring this project to life, Aurum is utilizing tokenization technology developed by Zoniqx, a service provider based in San Francisco. This technology will facilitate the creation of security tokens that represent the underlying financial instruments.

By leveraging the capabilities of the XRP Ledger, Aurum is making strides into the rapidly evolving market of real-world asset (RWA) tokenization, which is attracting growing interest from institutional investors due to its potential for enhanced operational efficiency and the ability to facilitate quicker, round-the-clock payments. Research from firms like McKinsey, BCG, 21Shares, and Bernstein indicates that the RWA market could grow to trillions of dollars in the near future.

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The launch of this tokenized fund marks a significant development for both the XRP Ledger and Ripple Labs. Ripple’s President, Monica Long, recently highlighted the company’s initiatives to expand in this area, including an anticipated approval from New York state regulators for a US dollar stablecoin that would enhance liquidity and enable institutions to tokenize and settle assets on the XRP Ledger.

David Schwartz, Ripple’s Chief Technology Officer and co-creator of the XRP Ledger, remarked, “Tokenizing private equity is another emerging use case for RWA, addressing the issues of illiquidity and limited access in these markets.”

Kosta Gushterov