- Ripple’s Metaco pushes into TradFi
- Ripple v. SEC: New developments
The World Economic Forum (WEF) has mentioned Ripple and XRP as leaders of financial markets tokenization.
A recent report by WEF, “Asset Tokenization in Financial Markets: The Next Generation of Value Exchange,” identifies key trends and players shaping the future of digital finance, spotlighting Ripple and XRP Ledger (XRPL) as instrumental in tokenizing private equity (PE) assets.
The report outlines how the tokenization of real-world assets, including PE, is set to reshape financial markets by improving efficiency, transparency and accessibility.
Among notable developments, the report cites the $1 billion tokenized PE and debt fund launched by Aurum Equity Partners on XRP Ledger. This pioneering move demonstrates XRPL’s utility as a scalable, decentralized Layer-1 blockchain, providing enhanced liquidity and fractional ownership options through secondary markets.
WEF also acknowledges Ripple’s acquisition of Metaco, a key digital asset custody provider, as part of a broader trend where digital-native service providers like BitGo and Metaco are positioned to offer specialized custodial and compliance solutions.
These services will be vital to helping financial institutions manage tokenized assets securely and within regulatory frameworks.
As private equity is projected to grow to $7 trillion by 2030, with 10% expected to be tokenized, the report emphasizes that tokenization could address longstanding inefficiencies in PE markets, such as lack of transparency and high barriers to entry.
Through blockchain platforms like XRPL, investment minimums have already dropped from over $100,000 to as low as $10,000, enabling broader investor participation.
Ripple’s Metaco pushes into TradFi
Switzerland-based Metaco has recently aligned itself with a new initiative in the crypto trading space — one that aims squarely at major banks and institutional players.
Metaco commented on a Bloomberg report detailing the launch of Rulematch, a fresh digital asset trading venue tailored specifically for banks and financial institutions located outside the United States.
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Spearheaded by former Credit Suisse executive David Riegelnig, Rulematch has raised $14 million in funding. Backers include well-known industry figures such as Joseph Lubin, co-founder of Ethereum and head of ConsenSys.
This move aligns with Metaco’s broader push to deepen its integration into institutional finance. In recent months, the Ripple-owned firm has formed multiple partnerships with large banks, enhancing its appeal as a secure gateway to digital assets for TradFi clients.
Ripple v. SEC: New developments
However, while Ripple makes strides in expanding its utility and reach through ventures like Metaco, its legal entanglement with the U.S. Securities and Exchange Commission remains unresolved.
In a new development this week, Judge Analisa Torres of the U.S. District Court for the Southern District of New York rejected a joint motion filed by Ripple and the SEC. The motion had sought an indicative ruling on a proposed settlement in their long-running case.
The parties had requested clarity on whether the judge would approve the settlement if the U.S. Court of Appeals for the Second Circuit were to remand the case.
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The proposed deal involved the SEC lifting a previously imposed injunction and agreeing to a reduced penalty for Ripple, cutting the fine down to $50 million. While the SEC’s willingness to negotiate represents a significant shift, the court’s refusal to weigh in at this stage throws the process into further uncertainty.
As Ripple’s legal battles continue to unfold, its strategic moves through Metaco show the company remains focused on shaping the future of institutional crypto infrastructure, regardless of its regulatory headwinds in the U.S.