World’s First Tokenized Equity and Debt Fund: Aurum’s $1B Data Center Initiative on XRP Ledger

• Aurum’s $1B fund marks the world’s first combined tokenized equity and debt initiative on the XRP Ledger, targeting global data center investments.
• Tokenization on XRPL enables efficient, 24/7 settlement and liquidity management, reinforcing Ripple’s growing role in real-world asset tokenization.

Aurum Equity Partners, a private equity firm, announced the launch of a $1 billion tokenized equity and debt fund on the XRP Ledger (XRPL) network. This development aligns with a previous investigative report by CNF, where the XRP community explored native staking on XRPL with contributions from Flare and Ripple.

This fund, described as the “world’s first combined equity and debt tokenized fund,” focuses on investments in data centers located in the U.S., United Arab Emirates, Saudi Arabia, India, and Europe. The initiative is a collaboration with Zoniqx, a San Francisco-based tokenization service provider, which will create security tokens representing underlying financial instruments.

The fund leverages XRPL’s enterprise-focused blockchain capabilities, reinforcing Ripple’s goal of capturing a share of the real-world asset (RWA) tokenization market. Tokenization is gaining momentum among institutional investors seeking more efficient operations and faster, 24/7 settlement capabilities.

By placing traditional financial products such as bonds, credit, and equity on blockchain rails, firms are tapping into a sector that McKinsey, BCG, 21Shares, and Bernstein forecast could grow to trillions of dollars over the next few years. Ripple’s CTO, David Schwartz, highlighted XRPL’s role in efficiently processing and managing transactions, making it an ideal platform for this type of tokenized financial product.

Ripple’s Expanding Role in Tokenization and Stablecoins

Ripple is also awaiting approval from New York regulators to launch its U.S. dollar stablecoin, which would enhance liquidity and support the tokenization of financial assets on the XRPL network. Ripple Labs President Monica Long emphasized the importance of this stablecoin in improving institutional liquidity during the company’s Swell conference.

Tokenization, particularly in private equity, addresses issues of illiquidity and limited access in traditional markets. Schwartz added that Aurum and Zoniqx’s efforts demonstrate how real-world assets can be more effectively managed through decentralized blockchain technology, highlighting XRPL’s role in this growing space.

Is this part of Ripple Swell 2024 as CNF recently revealed? However, according to CoinMarketCap data, that at the time of writing, Ripple (XRP) is trading at $0.5319, having decreased by 2.18% in the past day and 2.16% over the past week.