The post Diamond Tokenization in Dubai: Ripple Custody On-Chain appeared on BitcoinEthereumNews.com.

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…

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Filed under: News - @ February 3, 2026 1:24 pm