#RWA WEF: Ripple builds a tokenized asset infrastructure for future generations
Will Ripple pave the way for $7 trillion in private equity tokenization?
The World Economic Forum (WEF) has ranked Ripple and XRP as leaders in the tokenization of financial markets.
A recent report by the World Economic Forum (WEF), Asset Tokenization in Financial Markets: The Next Generation of Value Exchange, identifies the key trends and players shaping the future of digital finance and highlights the important role played by Ripple and XRP Ledger (XRPL) 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 increasing 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 groundbreaking move highlights the utility of XRPL as a scalable, decentralized Layer-1 blockchain that provides enhanced liquidity and fractional ownership options through secondary markets.
WEF also acknowledges Ripple's acquisition of major digital asset custody provider Metaco as part of a broader trend in which digital-native service providers such as BitGo and Metaco are positioned to offer dedicated custody and compliance solutions. These services are essential to help financial institutions securely manage tokenized assets within a regulatory framework.
With private equity investments expected to grow to $7 trillion by 2030, 10% of which will be tokenized, the report highlights that tokenization can address long-standing inefficiencies in the private equity market, such as a lack of transparency and high barriers to entry.
Through blockchain platforms such as XRPL, the minimum investment has been reduced from more than $100,000 to $10,000, allowing a wider range of investors to participate.
🔥Ripple's Metaco forays into TradFi
Swiss-based Metaco recently joined a new initiative in the crypto trading space – one that directly targets large banks and institutional players.
Metaco commented on a Bloomberg report detailing the launch of Rulematch, a brand new digital asset trading venue specifically for banks and financial institutions outside the United States.
Rulematch, led by David Riegelnig, a former executive at Credit Suisse, has raised $14 million in funding. Supporters include industry luminaries such as Ethereum co-founder and head of ConsenSys, Joseph Lubin.
The move is in line with Metaco's broader efforts to deepen its integration with institutional finance. In recent months, the Ripple-owned company has entered into partnerships with several large banks, enhancing its appeal as a secure portal for TradFi customers' digital assets.
🔥Ripple v. SEC: Update
However, despite Ripple's aggressive efforts to expand its utility and influence through businesses like Metaco, its legal dispute with the SEC remains unresolved.
In a new development this week, Judge Analisa Torres of the Southern District Court of New York rejected a joint motion filed by Ripple and the U.S. Securities and Exchange Commission (SEC). The motion is intended to provide an indicative ruling on the proposed settlement in the parties' protracted case.
The parties asked for clarity as to whether the judge would grant a settlement if the U.S. Court of Appeals for the Second Circuit remanded the case for retrial.
The proposed agreement involves the U.S. Securities and Exchange Commission (SEC) lifting a previously imposed ban and agreeing to reduce the fine on Ripple to $50 million. While the SEC's willingness to negotiate represents a significant shift, the court's refusal to step in at this stage has created even greater uncertainty about the process.
As Ripple's legal battle unfolds, its strategic move through Metaco shows that the company remains focused on shaping the future of institutional crypto infrastructure, regardless of the regulatory headwinds it faces in the United States.
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