Aurum Equity Partners will tokenize a $1 billion fund on the XRPL blockchain

What’s new? Private equity firm Aurum Equity Partners will tokenize its $1 billion fund on the XRP Ledger (XRPL) blockchain from fintech company Ripple. The initiative will be partnered with tokenization solutions provider Zoniqx. It also involves setting up data centers in the US, UAE, Saudi Arabia, India, and Europe.

Press release

What else is known? The initiative will leverage Zoniqx’s advanced Tokenized Asset Lifecycle Management (TALM) solution and Dynamic Compliant Interoperable Security Token (DyCIST) protocol to convert Aurum Equity Partners’ assets into tokenized financial instruments.

TALM will improve the efficiency, liquidity, and availability of trading tokenized assets in secondary markets. DyCIST combined with XRPL’s built-in security features ensures that the assets are compliant with global regulatory standards, including AML and KYC protocols.

“This development marks a significant step forward in integrating blockchain technology with traditional financial markets,” the company noted.

A distinctive feature of the new product is that it is the world’s first tokenized pooled equity and debt fund.

As part of the tokenization process, tokens representing ownership rights or interests in real-world assets (RWAs) such as stocks, bonds, fund shares, or real estate are issued on the blockchain.

Tokenization has been gaining popularity among players in the traditional finance sector in recent months, as it increases liquidity due to the ability to trade on crypto exchanges 24/7, as well as cost efficiency due to the absence of intermediaries. Transparency and security are also among the advantages of tokenization.

Hedera network team has launched its asset tokenization tool

It has a built-in compliance mechanism for regulators, including the SEC

Read more

Earlier this year, BlackRock, the world’s largest investment company, launched its tokenized treasury bond fund BUIDL on the Ethereum blockchain. The fund’s total value locked (TVL) exceeds $550 million. Last month, ParaFi Capital partially tokenized its $1,2 billion fund on the Avalanche blockchain.

According to data from aggregator CoinGecko, the top 3 countries in terms of interest in tokenized RWAs include the United States, Indonesia, and Turkey.