The Dubai Land Department (DLD), a government agency overseeing the real estate sector, has launched its first tokenized real estate platform—a government-backed initiative aiming to digitize $16 billion in properties by 2033.
Prypco Mint: Fractional Ownership for Dubai Properties
Developed in collaboration with real estate fintech firm Prypco, the Prypco Mint platform enables investors to purchase fractional ownership in Dubai properties using local currency, starting from 2,000 dirhams (approximately $540).
Key Features:
- Initial Phase: Supports dirham transactions exclusively for UAE ID cardholders.
- Future Expansion: Global access and integration with additional platforms planned.
- Banking Partner: Zand Digital Bank.
- Regulatory Oversight: UAE Central Bank, Dubai’s Virtual Assets Regulatory Authority (VARA), and Dubai Future Foundation’s Real Estate Sandbox.
XRP Ledger: The Technical Backbone
Tokenization expert Ctrl Alt selected the XRP Ledger blockchain to host property titles, citing its efficiency for real estate digitization. The firm integrated directly with DLD systems to ensure blockchain records remain synchronized with traditional government property ledgers.
Dubai’s Tokenization Vision
This launch aligns with Dubai’s broader strategy to accelerate real estate tokenization, a growing crypto trend. The DLD estimates tokenized properties could comprise 7% ($16 billion) of the city’s total real estate transactions by 2033.
Tokenization leverages blockchain to record ownership of traditional assets (e.g., bonds, funds, real estate), promising operational efficiency, faster settlements, and cost savings for global banks and asset managers.
Market Potential
Analysts from Ripple, BCG, and McKinsey project tokenized assets could grow into a multi-trillion-dollar market within the next decade, reshaping global finance.
👉 Explore how blockchain is transforming real estate investments
FAQs
1. What is real estate tokenization?
Tokenization divides property ownership into digital shares traded on blockchain platforms, lowering entry barriers for investors.
2. Why did Dubai choose XRP Ledger?
XRP Ledger offers fast, low-cost transactions and seamless integration with government systems, making it ideal for large-scale tokenization.
3. Can international investors use Prypco Mint?
Currently limited to UAE residents, but global access is under development.
4. How does tokenization benefit traditional real estate?
It enhances liquidity, reduces paperwork, and enables fractional ownership—unlocking new investment opportunities.