Ripple Backs $280M Diamond Tokenization Project on XRPL in UAE
Ripple is supporting a new project in the United Arab Emirates. It brings physical diamonds onto the blockchain. Billiton Diamond and tokenization firm Ctrl Alt have tokenized more than AED 1 billion. Which is about $280 million worth of certified polish diamonds. The tokens are created on the XRP Ledger (XRPL). The goal is to make diamond trading more open, faster and easier to check. This move also shows how real world assets that can move into digital markets in a regulated way.
Diamonds Move From Vaults to Blockchain
Billiton Diamond deals with diamond auctions and supply. Ctrl Alt provides the technology that converts physical assets into digital tokens. They worked together to develop a process. Which gives each diamond a digital version on the XRPL. Real inventory and certification data are links to these tokens. This means buyers can check where a stone came from. Not only thay they can also see how it was graded and who owned it before.
Ripple custody system protects the digital assets. This adds another layer of security. The firms say this makes diamonds easier to trade and track. It also reduces paperwork and manual checks. It means the diamond market can become more transparent and less slow.
Why the XRP Ledger Was Chosen
The XRP Ledger is used in the project due to the price and speed. XRPL charges very low fees. It runs transactions in a matter of seconds. This matters when large values move on-chain. It also helps when multiple tokens are created and move at the same time. In the first phase, Ctrl Alt has tokenized more than AED 1 billion in diamonds. The platform aims to include features like future secondary market trading and transfers.
But these steps will need regulatory approval before launch. The Dubai regulator VARA will review the system before it goes live for public use. Dubai main trading hub DMCC aided in creating the framework and connecting the partners. The group says this shows how commodities and digital finance can work together in the UAE.
What This Means for Tokenized Commodities
This project transforms diamonds into a more liquid digital asset. Usually diamonds are hard to trade quickly. Additionally, they lack public data and clear pricing which can be change by tokenization. Instead of stored in vaults now each stone turns into a digital unit which can travel between vaults. For Ripple this deal shows another real world use of its technology beyond payments. It also supports the idea that blockchains can handle high value goods. Not just crypto tokens.
Industry watchers say this could open the door for other assets like gold, art or rare metals to follow the same path. As such, the $280 million diamond tokenization effort marks a big step for physical assets going on-chain. It combines blockchain speed with real world trust. If it works at scale, it could change how luxury goods and commodities trade in the future.
The post Ripple Backs $280M Diamond Tokenization Project on XRPL in UAE appeared first on Coinfomania.
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