Dubai Launches Market for Tokenized Real Estate

- The pilot's second phase makes approximately 7.8 million tokens available for resale, which were initially issued against 10 properties valued at over $5 million (AED 18.5 million). - The technology stack for the project uses the XRP Ledger for recording all on-chain transactions, with Ripple Custody providing institutional-grade security for the digital assets. - Ctrl Alt, a tokenization provider licensed by Dubai's Virtual Assets Regulatory Authority (VARA), serves as the core infrastructure partner, integrating its platform directly with the Dubai Land Department's (DLD) official property registry. - The legal framework treats the tokens as "Asset-Referenced Virtual Assets" (ARVAs), which are directly linked to official property title deeds, a model designed to provide stronger legal clarity for on-chain ownership. - Initial offerings in the pilot phase saw significant demand, with one property selling out in under two minutes to 149 investors from 35 different countries. - The long-term goal, part of the Dubai Real Estate Sector Strategy 2033, is for tokenized assets to account for 7% of the city's property market, estimated to be a value of around $16 billion. - The platform, currently accessible to UAE residents via the PRYPCO Mint app, allows for fractional investment starting as low as AED 2,000 (approximately $545). - Future phases are expected to introduce features like automated rental income distribution to token holders through smart contracts, completing the investment lifecycle.