Investment banking firm Aurum Equity Partners has announced the launch of a $1 billion tokenized fund, combining equity and debt assets under the same basket.
According to an Oct. 22 announcement, the new tokenized fund will focus on establishing data centers in the United States, the United Arab Emirates, the Kingdom of Saudi Arabia, India, and Europe.
The fund will rely on Zoniqx’s asset tokenization solutions and the Dynamic Compliant Interoperable Security Token (DyCIST) protocol. It will also leverage the layer-1 blockchain XRP Ledger (XRPL) to explore new opportunities in real-world asset tokenization (RWA). Combined, these tools will convert the firm’s assets into tokenized financial instruments.
Using tokenization, the fund can attract a wider range of investors, including smaller investors who may not have access to large infrastructure investments.
“Tokenizing private equity is another emerging use case in RWA, tackling the challenges of illiquidity and limited access in these markets,” said David Schwartz, chief technology officer of Ripple and co-creator of the XRP Ledger.
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Aurum traditionally invests in essential infrastructure assets, focusing on sustainable growth in real estate, venture capital, and cloud infrastructure. According to Crunchbase, it has participated in more than 125 transactions worth $2 billion across India and the United States.
Tokenization has seen significant growth in recent years, with experts predicting the sector could expand 50-fold by 2030, driven by the promise of bringing traditional financial assets, such as real estate, bonds, and other physical assets, onto blockchain platforms.
RWA tokenization, market size predictions by 2030. Source: Tren Finance
By 2030, estimates suggest the RWA tokenization market could be worth anywhere from $4 trillion to $30 trillion, reflecting the growing demand for more accessible and efficient financial instruments.
“Our technology is designed to meet the evolving needs of the financial industry, and we are excited to demonstrate its potential in the private equity space,” said Prasanth Kalangi, founder and CEO of Zoniqx.
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