Dubai Land Department (DLD), a government agency for the real estate industry, has launched its first tokenized real estate platform as part of a government -supported effort that could see $ 16 billion worth of property digitized in 2033.
The platform, called Prypco Mint and developed in partnership with Fintech Fintech company Prypco, allows investors to buy fractional ownership in Dubai Properties using local currency starting at 2,000 Dirhams, or about $ 540, according to a Sunday press release from the agency.
In the initial phase, the platform only supports the Dirham transactions and is available to the United Arab Emirates ID card holders, but the agency said it plans to expand access globally in the near future and integrate more platforms later. Zand Digital Bank serves as a bank partner, while regulatory supervision comes from UAE Central Bank, Dubai’s virtual assets Regulatory Authority (Vara) and Dubai Future Foundation through its property sandbox.
The technical backbone of the project is tokenization specialist CTRL Alt’s infrastructure that has chosen the XRP Ledger Blockchain to place ownership. The company said it has directly integrated with DLD’s systems to ensure that the blockchain registrations remain synchronized with traditional state real estate.
The launch is based on Dubai’s initiative aimed at accelerating tokenization, a red-hot crypto-tendency, of the city’s thriving real estate market. The agency expected tokenized real estate could be 7%, approx. $ 16 billion, of the city’s total real estate transactions in 2033.
Tokenization is responsible for using blockchains to relocate and record ownership of traditional financial instruments such as bonds, foundations or real estate that attracts a number of global banks and asset managers with the promise of operational gains and faster, cheaper settlements. It can be a huge option: Tokenized assets could grow into a market for more trillion dollars in the next few years, as projected by Ripple, BCG, McKinsey and others.
Read more: Ripple, BCG Project $ 18.9T Tokenized Asset Market in 2033
