The city of Dubai also initiated a tokenized property trading platform named Prypco Mint based on the XRP Ledger, the first blockchain-based real estate platform.
Dubai Land Department (DLD) collaborated with Prypco, Ctrl Alt, and Zand Digital Bank to allow property ownership in fractions.
The platform enables the UAE residents to purchase property at as low as 2,000 AED or 540 US dollars, which is a big change in the real estate market in the city.
The announcement resulted in a 2% rise in the price of XRP.
Fractional ownership and international expansion plans
Prypco Mint allows investors to buy part ownership in Dubai properties, the first step of which focuses on the UAE residents.
The payments are made in AED, and currently, the system can be used exclusively by the holders of a valid Emirates ID. Yet, the DLD has been stating its plans to go global and add more properties to the system within the next few months.
The initial pilot exercise was immediately sold out, and the tokenization of properties based in Dubai was made of a total of 7.8 million tokens valued at $5 million.
This achievement preconditions a new application of blockchain technology in the real estate industry and its further expansion.
Strategic Collaboration and Future Growth
To ensure the success of this initiative, the Dubai Land Department has collaborated with a number of partners.
The tokenization technology to be used in the project is being provided by Ctrl Alt, a controlled London-based technology company.
These Asset-Referenced Virtual Asset management tokens will also support transfer to secondary-market transfers, and investors will be able to resell their fractional ownership of properties in Dubai.
The platform will be regulated by the regulatory bodies of the UAE, such as the Dubai Virtual Assets Regulatory Authority (VARA), which will ensure that the laws are adhered to in the country.
In addition to this, the Dubai Future Foundation has established a PropTech Sandbox to experiment and test new technologies in the industry.
XRP’s Role in the Project
The XRP Ledger was chosen because of its high transaction speed, minimal fees, and permission to comply with regulations, which made the Dubai Land Department choose the blockchain project.
Ripple Custody will grant support for token payments, which will guarantee the safety and security of on-chain real estate transactions.
XRP has also been taking a lead in tokenization, and it is reported that tokenized assets based on XRP have increased by 2,200% within the last one year.
Ripple has been strategic in investing in tokenized assets, such as a tokenized fund by OpenEden of up to $10 million and a tokenized fund by Abrdn of up to $5 million, among others, which further displays the increasing involvement of the company in the DeFi and tokenization of real estate.
The tokenization of real estate in Dubai is a revolutionary step in the way blockchain technology is implemented in the real estate market. ERP Ledger has enabled efficient and secure fractional ownership of real estate.
As the platform experienced rapid growth and the first pilot stage became successful, it is likely to grow worldwide.
The digital transformation of the real estate industry will only keep on increasing as more regions adopt the concept of tokenization, and the digital transformation of the industry will likely enhance the value of XRP in the next few years.
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