XRP News Today: DL Holdings Tokenizes Assets to Democratize Private Market Liquidity

DL Holdings Group Limited (1709.HK), a Hong Kong-listed company, is advancing plans to tokenize private equity interests in Animoca Brands through a limited partnership fund (LPF), leveraging the XRP Ledger. The initiative, approved under Hong Kong's Cyberport "Blockchain & Digital Asset Pilot Subsidy Scheme" as of September 2025, involves a $5.7 million investment in technology companies such as ByteDance, Kraken, and eSelf AI. The group holds indirect stakes of $2 million in ByteDance, $3 million in Kraken, and $700,000 in eSelf AI, with future plans to tokenize these positions using special investment vehicles (SPVs). No decisions have been made on distributing tokens to investors, and the firm emphasizes that token ownership does not equate to direct asset ownership or guarantee liquidity.

In parallel, DL Holdings is progressing with tokenizing its DL Tower property in Central, Hong Kong, valued at approximately $60 million. Subsidiaries have submitted regulatory materials to the Hong Kong Securities and Futures Commission (SFC), aiming to begin technical deployment in Q4 2025 and launch token distribution by early 2026. The company partners with fintech firm Asseto to ensure compliance and institutional-grade execution, with the DL Tower project positioning as a benchmark for real-world asset (RWA) tokenization in Hong Kong's commercial real estate market.

The XRP Ledger's role in this initiative is highlighted for its fast settlement (3–5 seconds), low fees, and compliance tools, which align with institutional-grade requirements. Ripple's XRP Ledger is increasingly adopted for RWA tokenization, including stablecoins and real estate, due to its built-in decentralized exchange (DEX) and automated market maker (AMM) capabilities. Markus Infanger, Ripple's Senior Vice President, notes that SPVs serve as transitional tools, with the ultimate goal of "native issuance" where tokens themselves embody legal ownership and compliance rules.

Hong Kong's regulatory environment remains a critical factor. While the city actively promotes RWA tokenization through policies like the "Digital Asset 2.0" framework, Beijing has cautioned mainland brokerages to pause offshore projects to ensure risk control. DL Holdings' submissions to the SFC reflect its alignment with Hong Kong's ambition to become a global RWA hub, despite mainland China's cautious stance.

DL Holdings' strategy underscores broader trends in RWA tokenization, which the global market is projected to exceed $2 trillion by 2030. By tokenizing high-value assets like tech equity and real estate, the firm aims to address liquidity challenges in private markets while democratizing access for retail investors. Andy Chen, DL Holdings' chairman, emphasized that RWA tokenization enhances transparency and financial inclusion, aligning with the company's mission to "simplify investing".

The project's timeline and regulatory compliance highlight the complexities of RWA adoption. DL Holdings anticipates finalizing DL Tower's tokenization by early 2026, pending approvals, while the Animoca Brands LPF benefits from XRP Ledger's scalability and Hong Kong Cyberport's pilot funding. As XRP Ledger continues to evolve, its role in bridging traditional finance and blockchain infrastructure remains pivotal for DL Holdings' vision.

Source: [1] The Crypto Times (https://www.cryptotimes.io/2025/10/09/dl-holdings-to-tokenize-animoca-brands-spvs-on-xrp-ledger/)

[4] Coindesk (https://www.coindesk.com/tech/2025/08/14/ripple-exec-on-why-xrp-ledger-is-uniquely-suited-for-real-world-asset-tokenization)

[5] Coinpedia (https://coinpedia.org/news/real-world-asset-rwa-tokenization-in-hong-kong-faces-beijings-regulatory-pushback/)

[6] Ambcrypto (https://ambcrypto.com/china-pauses-rwa-tokenization-in-hong-kong-whats-going-on/)

[10] LAOHU8 (https://www.laohu8.com/post/487204779737376)