Dubai is pushing deeper into real-world asset tokenization with a new initiative that places more than $280 million worth of certified polished diamonds onto blockchain infrastructure, underscoring the emirate’s ambition to fuse its traditional commodities trade with regulated digital markets.
On February 3, Dubai-based Billiton Diamond and tokenization provider Ctrl Alt said they have already tokenized over AED 1 billion ($280 million) of polished diamond inventory held in the UAE. The assets are secured using enterprise custody technology from Ripple, while tokens are minted on the XRP Ledger.
The companies describe the project as an institutional-grade pipeline that converts certified stones into digital representations that can eventually be traded, transferred, and potentially listed on primary and secondary markets, subject to regulatory approval.
Tokenized Diamonds Enter Institutional Infrastructure
Billiton, known for its Vickrey-style auctions of rough diamonds, said the collaboration extends its model into polished stones by embedding real-time inventory data and certification records on-chain. The goal is to enable buyers to verify provenance, grading, and ownership history before completing a transaction.
“This partnership transforms polished diamonds from a traditionally illiquid asset class into a transparent, investable digital asset,” Jamal Akhtar, joint owner of Billiton Diamond, said in a statement, adding that tokenization could shorten working-capital cycles for manufacturers and traders.
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Ctrl Alt Chief Executive for MENA Robert Farquhar said the company’s role is to provide “a clear, secure, and compliant route for diamond ownership to move on-chain, from asset origination to digital market participation.”
The initiative has also been supported by Dubai Multi Commodities Centre, which has positioned itself as a bridge between commodities markets and Web3 infrastructure.
Regulatory Scrutiny and Market Structure Still Key
A public platform for tokenized diamonds will require approval from the Virtual Assets Regulatory Authority, which has been rolling out frameworks for custody, issuance, and broker-dealer activity in the emirate.
Industry participants say the pilot demonstrates technical feasibility, but broader adoption will depend on clear redemption mechanics, standardized lot sizes, insurance arrangements, and independent valuation processes, elements necessary for tight pricing and reliable liquidity.
Reece Merrick, Ripple’s managing director for the Middle East and Africa, said enterprise-grade custody is essential for moving high-value physical assets on-chain “with absolute confidence.”
If regulators sign off, the project could become one of the most advanced examples of commodity tokenization globally, offering a template for integrating physical assets into digital capital markets at scale.
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