Dubai becomes a pioneer in the integration of blockchain technology into the real estate sector and starts a 16-billion dollar initiative on the XRP Ledger from Ripple.
• Dubai starts state-supported real estate tokenization project
• Blockchain technology enables fractionated property of real estate
• Analyst: Ripple does not only offset token for profit reasons
According to the “Crypto Valley Journal”, the building authority DLD (Dubai Land Department) introduced the platform Prypco MINT in cooperation with the FinTech company Prypco and the infrastructure partner CTRL Alt. Together, one wants to convert real estate ownership into digital tokens that are stored on the blockchain in order to facilitate access to real estate investments and increase market liquidity.
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Specifically, this initiative enables investors from 2,000 AED (United Arab Emirates Dirham), the equivalent of approximately $ 540, proportionate property ownership rights in Dubai. The ownership certificates are token on the XRP Ledger (XRPL) and synchronized with the official land register data.
World’s largest tokenization project
The declared goal is to digitize around 7 percent of the total real estate transaction volume in Dubai by 2033 – thus around $ 16 billion. This would be the world’s largest tokenization project so far.
Registration for the project has been running since March. So far, only people with residence or legal status in the United Arab Emirates have access to this initiative, but it is planned to address international investors in the future. If the pilot project is successful, this could not only promote the acceptance of blockchain technologies in the real estate sector, but also significantly promote the use of the XRP Ledger.
Token – i.e. the mapping of traditional assets on a blockchain – could develop into a gigantic growth market, after all, it promises enormous efficiency gains and faster and cheaper handling.
Analyst praise for Ripple
Ripple was repeatedly accused that the company would throw XRP in order to enrich itself. According to the critics, the token would offer little real benefits. But the XRP community analyst @Cryptoinsightuk does not share this view and sees the most recent real estate tokensization project Dubais that the critics are wrong.
The XRPL integration in Dubai is clear proof of the real benefit of the XRP Ledger, the analyst argues according to “The Crypto Basic”. In this context, he also pointed out that Ripple is the only crypto company with a complete crypto payment license in the United Arab Emirates.
The company indeed significantly enhances that a metropolis like Dubai has chosen Ripple’s technology. The organizers of the project in Dubai have declared that due to the many years of reliability, low fees and the decentralized infrastructure, they had been chosen for the XRPL.
Editor finance.net