The XRP Ledger has expanded its utility, especially in the real-world asset tokenization sector, following a collaboration between Zoniqx and Aurum Equity Partners.
On October 22, Aurum announced that it has launched a tokenized equity and debt fund worth $1 billion on the XRPL blockchain. The debut, which birthed the “world’s first combined equity and debt tokenized fund,” will facilitate easy accessibility to Aurum’s tokenized assets using the XRP Ledger.
XRPL Secures Major Tokenization Gig
The $1 billion fund will focus on investing in data centers on a global scale. Per the Tuesday press release, the venture will establish data centers in the Kingdom of Saudi Arabia, the United States, the United Arab Emirates, India, and Europe.
The announcement also involves another notable firm tipped to contribute uniquely to the initiative. For context, Aurum partnered with Zoniqx to provide tokenization asset lifecycle management (TALM) solutions and the dynamic complaint interoperable security token (DyCIST) protocol.
Essentially, Zoniqx will tokenize Aurum’s equity and debt assets, and XRP Ledger will provide a marketplace for prospective investors to access the tokenized funds. Aurum noted that XRP Ledger will provide the investors with “liquidity and diversification” as they invest in the first combined equity and debt tokenization instrument.
The recent move comes eight months after Zoniqx inked a tokenization-focused collaboration with Ripple. Notably, the Silicon Valley firm partnered with RippleX, the development arm of Ripple, in February to integrate multi-asset tokenization features on the XRP Ledger.
Ripple and XRP Ledger Big on RWA Tokenization
Notably, the latest development aligns with Ripple’s broader vision to become a key player in the nascent real-world asset tokenization sector. Market experts have speculated that the sector will grow into a trillion-dollar industry.
Ripple’s CLO Stuart Alderoty had earlier stated that asset tokenization was one of the three pillars the payment giant is looking to establish on its business chain. Notably, it extended its partnership with UK-based exchange Archax earlier this year to tokenize millions of RWAs on the XRPL.
Reacting to the Tuesday development, Ripple CTO David Schwartz stated that private equity tokenization was an emerging utility in the RWA sector.
He further noted that the use of the XRPL in the collaboration between Aurum and Zoniqx stresses that blockchain technology can play a major role in harnessing the potential that asset tokenization brings.
Meanwhile, the XRP Ledger is poised for enhanced liquidity and use case following the proximity to the highly anticipated launch of the RLUSD stablecoin. Ripple Lab president Monica Long noted that the fintech firm was awaiting regulatory approval before debuting the stablecoin.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
