Dubai authorities use XRPL for real estate tokenization project

What’s new? The Dubai Land Department (DLD) has selected Ripple fintech company’s XRP Ledger (XRPL) blockchain for its real estate tokenization initiative. The project involves several parties, including government organization Dubai Future Foundation, real estate investment platform Prypco, and blockchain infrastructure company Ctrl Alt.

Press release

What else is known? Ctrl Alt will oversee the tokenization system, ensuring the secure issuance and tracking of ownership documents on the blockchain. This integration will link blockchain-based records with Dubai’s traditional real estate ledger, creating a single data system that supports digital and physical real estate transactions.

The project will make real estate ownership more accessible through fractionalization, allowing individuals to invest amounts of 2000 dirhams and above in real estate through the Prypco Mint platform.

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Mahmoud AlBurai, a senior advisor at the Land Department, said that more than 3000 investors have already shown interest in the tokenization project. If predictions come true, it could bring $16 billion to the real estate sector by 2033, accounting for 7% of the total real estate sales and purchase transactions in Dubai.

XRPL was chosen for its high transaction speed, minimal fees, and compatibility with the country’s regulatory framework. Ripple has worked hard to prepare XRPL for institutional adoption.

Last year, it invested $10 million in tokenized US Treasury bills through OpenEden and then invested $5 million in Abrdn, a Luxembourg-based fund focused on tokenized assets.

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Investors are also expecting the launch of exchange-traded funds based on the Ripple-issued token XRP in the United States. So far, the securities regulator has deferred decisions on a number of applications to list such products from investment firms.

In April, crypto exchange HashKey-linked company launched Asia’s first XRP fund, and in May, US-based pharmaceutical firm Wellgistics added payments in XRP and began accumulating the asset on its balance sheet.