#RWA WEF: Ripple is building tokenized asset infrastructure for future generations
Will Ripple pave the way for the tokenization of $7 trillion in private equity?
The World Economic Forum (WEF) has listed Ripple and XRP as leaders in the tokenization of financial markets. A recent report by the WEF, "Tokenization of Assets in Financial Markets: The Next Generation of Value Exchange," highlights the major trends and participants shaping the future of digital finance, emphasizing the significant role Ripple and the XRP Ledger (XRPL) play in the tokenization of private equity (PE) assets. The report outlines how the tokenization of real-world assets, including PE, will reshape financial markets by enhancing efficiency, transparency, and accessibility.
Notable developments in the report include the launch of a $1 billion tokenized private equity and debt fund by Aurum Equity Partners on the XRP Ledger. This pioneering initiative demonstrates the practicality of XRPL as a scalable, decentralized Layer-1 blockchain capable of providing enhanced liquidity and fractional ownership options through secondary markets. The WEF also acknowledges Ripple's acquisition of leading digital asset custody provider Metaco, as part of a broader trend where digital-native service providers like BitGo and Metaco are positioned to offer specialized custody and compliance solutions. These services are crucial for helping financial institutions securely manage tokenized assets within regulatory frameworks. The report projects that by 2030, the scale of private equity investments will grow to $7 trillion, with 10% being tokenized, highlighting how tokenization can address long-standing inefficiencies in the private equity investment market, such as lack of transparency and high entry barriers. Through blockchain platforms like XRPL, the minimum investment amount has been reduced from over $100,000 to $10,000, allowing a wider range of investors to participate.
🔥Ripple's Metaco ventures into TradFi
Swiss-based Metaco has recently joined a new initiative in the crypto trading space—directly targeting large banks and institutional participants. Metaco commented on a Bloomberg report detailing the launch of Rulematch, a new digital asset trading venue specifically for banks and financial institutions outside the United States. Rulematch, led by former Credit Suisse executive David Riegelnig, has secured $14 million in funding. Supporters include industry luminaries such as Ethereum co-founder and ConsenSys head Joseph Lubin. This move aligns with Metaco's broader efforts to deepen institutional financial integration. In recent months, the Ripple-owned company has established partnerships with several large banks, enhancing its appeal as a secure digital asset gateway for TradFi clients.
🔥Ripple vs. SEC: Latest Developments
However, despite Ripple's significant expansion of its utility and influence through enterprises like Metaco, its legal dispute with the U.S. Securities and Exchange Commission remains unresolved. This week saw new developments as Judge Analisa Torres of the Southern District of New York dismissed a joint motion filed by Ripple and the SEC. The motion sought an indicative ruling on a proposed settlement in their long-standing case. Both parties requested clarification on whether the judge would approve the settlement if the U.S. Court of Appeals for the Second Circuit remanded the case for reconsideration. The proposed agreement involves the SEC lifting previously imposed injunctions and agreeing to reduce fines against Ripple to $50 million. Despite the SEC's willingness to negotiate representing a significant shift, the court's refusal to intervene at this stage adds further uncertainty to the process. As Ripple's legal battle continues to unfold, its strategic moves through Metaco indicate that the company remains focused on shaping the future of institutional crypto infrastructure, regardless of regulatory hurdles it faces in the U.S.
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