Dubai Turns To XRP Ledger

DLD has switched on the Middle East's first government-backed tokenization of property title deeds, selecting the open-source XRP Ledger (XRPL)

Dubai’s Land Department (DLD) has switched on the Middle East’s first government-backed tokenization of property title deeds, selecting the open-source XRP Ledger (XRPL) as the settlement layer for a pilot expected to reshape how domestic real-estate assets are bought, sold and financed.

Announced on Wednesday, the initiative sees DLD deploying fractional title tokens on XRPL in partnership with tokenization specialist Ctrl Alt, and both on-chain and physical deed records being synchronised in real time.

At the same time, the department is opening a subscription period for members of the public to invest in a portfolio of off-plan apartments in the emirate, kicking off with a minimum ticket of AED 2,000 ($545) via the PRYPCO Mint platform.

The project is part of DLD’s Real Estate Evolution Space Initiative (REES), which aims to attract capital and diversify the Gulf state’s economy. It is also in line with the government's broader vision for developing a thriving digital economy.

“We are excited to be launching this initiative with DLD to bring real estate investment to a wider audience,” said Matt Ong, founder and chief executive of Ctrl Alt.

“The initiative highlights Dubai's commitment to innovation and its vision for the future of finance, which is truly world-class.”

The initiative will see fractional title tokens being minted by Ctrl Alt’s technology, with each token representing a direct economic interest in a registered property.

The company has integrated its stack directly with DLD databases, so that any on-chain transfer will instantly update the government ledger, preserving legal finality while dispensing with paper conveyancing.

"This pilot signifies a significant step in advancing the real estate sector strategy 2033 and the broader Dubai economic agenda D33 by leveraging blockchain technology to broaden participation in the real estate market and enhance regulatory competitiveness," said DLD.

"The initiative aligns with the Virtual Assets Regulatory Authority (VARA) mandate to regulate and license new virtual asset products and services in accordance with the highest international standards."

XRPL was selected thanks to its decade-long reliability and stability in tokenizing and exchanging digital and real-world assets. The chain is known for its low network fees, high throughput and rapid transaction finality. It currently processes nearly two million transactions a day.

"This programme is a massive milestone for Dubai's real estate market, and we're proud to be playing a part in it," said RippleX, the developer arm of Ripple.

"The initiative will enable fractional ownership of real estate assets, providing greater liquidity and accessibility to a wider range of investors."

The project aims to issue roughly AED 60 billion ($16 billion) of fractional-deed tokens by 2033, which would be about seven per cent of all property transactions forecast for that year, according to DLD projections.

The initiative comes as the government is rolling out a sandbox for testing new financial technologies and products.

Earlier this year, the government announced plans to introduce new regulations for cryptocurrencies and other digital assets as part of efforts to boost the competitiveness of the financial hub.

The government is also planning to introduce a new legal framework for Initial Coin Offerings (ICOs) and other types of digital token offerings.

The move to regulate cryptocurrencies and other digital assets is part of a broader effort by the government to diversify the economy and reduce its dependence on oil.

In recent years, Dubai has emerged as a leading center for cryptocurrency and blockchain activity in the Middle East. Several major crypto exchanges and blockchain startups have set up operations in the emirate in recent years.

The government has been supportive of the industry and has taken steps to encourage further growth. For example, in 2019, the Central Bank of the UAE granted a license to Paxos, a US-based cryptocurrency exchange, to operate a regulated fiat currency token in the country.

The move made the UAE the first country in the Middle East to authorize a stablecoin.

The government’s initiative to tokenize property title deeds is the latest step in this effort to promote the development of the digital asset industry in the emirate.

At press time, XRP traded at $2.34.