In Dubai, the real-world asset (RWA) industry has already seen significant progress, with the Dubai Land Department (DLD) tokenizing its first real estate property in 2025. However, after the tokenization, the shares of the tokenized property had not entered the trading phase. Now, here is the second phase of Dubai’s real estate tokenization pilot project, aimed at trading in a controlled secondary market.
Reece Merrick, Senior Executive Officer of Ripple, Middle East & Africa, boldly announced this major move in tokenization, saying, “Thrilled to see phase two launch for Dubai Land Department real estate tokenization project.”
The second phase follows the issuance of millions of tokens
For the uninitiated, tokenization is the process of converting real-world assets, such as a property, into digital shares on a blockchain. Individuals/institutions can buy and sell digital representations of a tokenized asset on a blockchain platform rather than buying the entire physical asset.
In the phase one process, DLD, with the help of other partners, tokenized nearly 10 real estate properties, valued at AED 18.5 million, or $5 million. These tokenized real estate properties amassed around 7.8 million tokens, meaning these numbers of tokens were issued.
In phase two, 7.8 million tokens can be traded in a controlled secondary market, when token holders can sell their tokenized shares of real estate properties. In other words, phase one focuses on issuing tokens, allowing users to buy them, while phase two enables token holders to sell them. That said, a proper sell and buy mechanism has been implemented by the DLD and regulatory bodies of the region.
According to an official statement, the second phase of the tokenization project aims “to evaluate market efficiency and operational readiness” besides ensuring transparency, governance, and investor protections.
As mentioned earlier, the project is still under pilot mode because regulatory authorities are monitoring the investor behavior, governance, regulatory compliance, and the overall performance of the project. Before it moves for further expansion, regulators are currently watching how this initiative will progress.
Three major players back real estate tokenization in Dubai
Three prominent names are supporting real estate tokenization alongside the Dubai Land Department. Ctrl Alt, a leading tokenization infrastructure provider, operates property tokens, XRP Ledger (XRPL) acts as the blockchain backbone, and Ripple Custody stores and secures the digital tokens on behalf of institutions and investors.
During the primary phase, Ctrl Alt minted and issued the original title deed ownership tokens. In the secondary phase, the infrastructure provider will provide market functionalities for the tokenization project.
Another notable name in the industry is PRYPCO Mint, a regulated platform where investors can trade tokenized property stakes in the secondary market.
As RWA tokenization is hitting new milestones globally, Dubai’s tokenization niche could become one of the sources of this growth. While speaking to AltCoin Desk at AIBC Eurasia Summit in Dubai, Anton Golub, the Founding Member of RWA Labs told that the UAE is expected to see more property developers stepping into real estate tokenization. Firm regulators like the Virtual Assets Regulatory Authority (VARA), along with consistent support for innovation and strategic goals of leadership, build a strong ecosystem in the country, said Anton.
