Aurum Equity Partners, an investment banking firm, has announced the launch of a groundbreaking $1 billion tokenized fund. This innovative fund will merge equity and debt assets to fuel investments in data centers across the United States, United Arab Emirates, Saudi Arabia, India, and Europe.
Leveraging Blockchain for Real-World Asset Tokenization
As outlined in their October 22 announcement, Aurum’s tokenized fund will rely on Zoniqx’s asset tokenization solutions and the Dynamic Compliant Interoperable Security Token (DyCIST) protocol. It will also utilize the XRP Ledger (XRPL), a layer-1 blockchain, to convert their assets into tokenized financial instruments, exploring the expanding field of real-world asset (RWA) tokenization.
By embracing tokenization, Aurum aims to open doors for a wider range of investors, particularly smaller investors who may have previously been unable to access 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, Ripple’s CTO and co-creator of the XRP Ledger.
A History of Infrastructure Investments
Aurum Equity Partners has a strong track record in essential infrastructure investments, emphasizing sustainable growth in sectors like real estate, venture capital, and cloud infrastructure. According to Crunchbase, the firm has completed over 125 transactions worth $2 billion, with a focus on the United States and India.
The Growing Trend of Tokenization
Tokenization, the process of turning traditional assets like real estate and bonds into blockchain-based tokens, has gained significant traction in recent years. Experts predict that the sector could expand by 50 times by 2030. By then, estimates suggest the RWA tokenization market could be valued between $4 trillion and $30 trillion, driven by the increasing demand for more accessible and efficient financial instruments.
Prasanth Kalangi, founder and CEO of Zoniqx, expressed enthusiasm for this new venture, stating, “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.”
