The post Diamond Tokenization in Dubai: Ripple Custody On-Chain appeared on BitcoinEthereumNews.com. In Dubai, a new institutional pilot is using diamond tokenizationThe post Diamond Tokenization in Dubai: Ripple Custody On-Chain appeared on BitcoinEthereumNews.com. In Dubai, a new institutional pilot is using diamond tokenization

Diamond Tokenization in Dubai: Ripple Custody On-Chain

3 min read

In Dubai, a new institutional pilot is using diamond tokenization to move high-value stones on-chain while testing the limits of virtual asset regulation.

Over $280 million in polished diamonds moved on-chain

Billiton Diamond and tokenization firm Ctrl Alt have moved more than $280 million in certified polished diamonds on-chain in the UAE, using Ripple‘s custody technology and the XRP Ledger (XRPL).

The firms said they have already tokenized over AED 1 billion ($280 million) in polished diamond inventory held in the UAE. Moreover, each token is tied to physical stock of certified stones, positioning the project squarely in the real-world asset segment.

Institutional-grade pipeline awaiting VARA regulatory green light

The initiative is framed as an institutional-grade tokenization pipeline for polished stones, aimed at faster settlement and clearer diamond provenance data. However, a broader platform rollout and any move toward wider distribution will depend on approval from Dubai’s Virtual Assets Regulatory Authority (VARA).

That said, the next phase is not purely technical. A full-scale launch, deeper liquidity and broader access to these polished stone tokens all require VARA regulatory approval before the project can move beyond its controlled pilot stage.

Ripple’s role: custody and infrastructure, not marketplace

The companies said Ripple‘s enterprise custody tools will secure the tokenized diamond inventory, while the XRPL will handle token issuance and transfers. In practice, that places Ripple at the infrastructure or plumbing layer rather than in the trading venue itself.

However, the harder challenge in tokenized commodities is rarely the minting of tokens. Instead, the real test is whether such assets can trade meaningfully with tight spreads, reliable pricing and clear diamond redemption mechanics for institutional users.

Key market details still unclear for polished diamond tokens

While the project is being positioned as a route to faster settlement and better transparency for polished diamond tokens, several crucial market parameters remain undisclosed. Moreover, investors still lack clarity on how an eventual trading venue would handle different stone grades and certificates.

The firms have pointed to a longer roadmap of lifecycle features such as custody, transfers and secondary market readiness. That said, they have not yet detailed how redemptions would work, what minimum lot sizes will be, or how pricing will be set for individual stones, all of which are critical for any institutional market.

XRPL and real-world asset push in Dubai

Within this structure, XRPL custody solutions are being used to underpin the token infrastructure while keeping the marketplace layer separate. However, the success of this approach will ultimately depend on whether institutional buyers and liquidity providers see enough transparency and operational clarity.

Dubai’s DMCC said it played a coordinating role by connecting stakeholders and supporting the broader ecosystem around commodities tokenization. Moreover, the emirate is pushing to make real-world assets, including polished stones, a sustainable business line rather than a one-off experiment.

Outlook for real-world asset tokenization of diamonds

As these polished stones move on-chain via diamond tokenization, the project highlights both the promise and the complexity of linking physical commodities to digital markets. However, without concrete details on trading, pricing and redemption, the initiative will remain a tightly controlled pilot rather than a fully tradable asset class.

For now, the combination of Ripple custody technology, UAE-based inventory and Dubai’s regulatory framework offers a high-profile test case for tokenized commodities. Its evolution over the coming phases will show whether institutional demand can match the technical ambition of the design.

Source: https://en.cryptonomist.ch/2026/02/03/diamond-tokenization-dubai-ripple/

Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact [email protected] for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

You May Also Like

What Would Happen If Amazon Were To Incorporate XRP Into Its Services?

What Would Happen If Amazon Were To Incorporate XRP Into Its Services?

Rumors of an alliance between XRP and multinational tech giant Amazon are circulating across the market once again. A crypto market expert has shared what could
Share
Bitcoinist2026/02/04 00:00
UK Looks to US to Adopt More Crypto-Friendly Approach

UK Looks to US to Adopt More Crypto-Friendly Approach

The post UK Looks to US to Adopt More Crypto-Friendly Approach appeared on BitcoinEthereumNews.com. The UK and US are reportedly preparing to deepen cooperation on digital assets, with Britain looking to copy the Trump administration’s crypto-friendly stance in a bid to boost innovation.  UK Chancellor Rachel Reeves and US Treasury Secretary Scott Bessent discussed on Tuesday how the two nations could strengthen their coordination on crypto, the Financial Times reported on Tuesday, citing people familiar with the matter.  The discussions also involved representatives from crypto companies, including Coinbase, Circle Internet Group and Ripple, with executives from the Bank of America, Barclays and Citi also attending, according to the report. The agreement was made “last-minute” after crypto advocacy groups urged the UK government on Thursday to adopt a more open stance toward the industry, claiming its cautious approach to the sector has left the country lagging in innovation and policy.  Source: Rachel Reeves Deal to include stablecoins, look to unlock adoption Any deal between the countries is likely to include stablecoins, the Financial Times reported, an area of crypto that US President Donald Trump made a policy priority and in which his family has significant business interests. The Financial Times reported on Monday that UK crypto advocacy groups also slammed the Bank of England’s proposal to limit individual stablecoin holdings to between 10,000 British pounds ($13,650) and 20,000 pounds ($27,300), claiming it would be difficult and expensive to implement. UK banks appear to have slowed adoption too, with around 40% of 2,000 recently surveyed crypto investors saying that their banks had either blocked or delayed a payment to a crypto provider.  Many of these actions have been linked to concerns over volatility, fraud and scams. The UK has made some progress on crypto regulation recently, proposing a framework in May that would see crypto exchanges, dealers, and agents treated similarly to traditional finance firms, with…
Share
BitcoinEthereumNews2025/09/18 02:21
Xgram Launches Private USDT ERC20 to XMR Swaps

Xgram Launches Private USDT ERC20 to XMR Swaps

San Jose, Costa Rica  Xgram.io, a leading non-custodial multichain cryptocurrency exchange platform, today announced the availability of private swaps for the USDT
Share
AI Journal2026/02/04 00:04