In a significant stride towards the future of commodity tokenization, Ripple has unveiled that over AED 1 billion (exceeding $280 million) of certified polished diamonds stored in the United Arab Emirates have been successfully tokenized on the XRP Ledger. This monumental project intertwines high-value physical assets with on-chain issuance, custody, and future market accessibility.
Announced on Tuesday in collaboration with Billiton Diamond and Ctrl Alt, the initiative aims to facilitate an end-to-end tokenization process for certified polished diamonds specifically within the Dubai market. Designed to enhance transaction interoperability, it allows for the verification of provenance, grading, and ownership history, while streamlining historically cumbersome settlement workflows laden with offline certification.
XRP Ledger Fuels Diamond Tokenization Drive
According to the press release, Ctrl Alt has already minted tokens for diamonds valued over AED 1 billion on the XRP Ledger. The selection of this network was based on its capabilities for rapid settlements, low transaction fees, and scalable architecture. The security of these tokenized assets is underpinned by Ripple’s “enterprise-grade custody technology.”
Reece Merrick highlighted the significance of this development, emphasizing that custody and auditability are pivotal for institutional-grade commodity tokenization. On social media, he stated, “This initiative shows how Ripple’s technology can bridge the gap between physical assets and the digital economy, utilizsing our enterprise-grade custody solution to secure high-value diamond assets with unrivaled trust and security.”
Additionally, the firms are poised to expand their initiative beyond the initial tokenization, focusing on the integration of real-time inventory management and verification of certification data directly on-chain, allowing for secure confirmation of asset origins, grading, and ownership history before transactions.
Future workstreams will explore the establishment of a secondary market, encompassing custody, transfer, and market participation—a step that signifies the intention to not merely digitize records, but also to create a robust infrastructure for distribution.
This next phase of the project hinges on regulatory approval from the Virtual Assets Regulatory Authority (VARA), reinforcing the project’s commitment to compliance and market integrity rather than serving as a mere proof of concept.
Jamal Akhtar underscored the revolutionary impact this partnership could have on liquidity, asserting that it would facilitate quicker access to cash in a market notorious for its operational complexities when financing and transferring diamonds. “This partnership transforms polished diamonds from a traditionally illiquid asset class into a transparent, investable digital asset that supports manufacturers, brands, and investors alike,” he commented. “Tokenization introduces an unprecedented level of transparency, unlocking the potential for new liquidity and fostering seamless global participation in Dubai’s burgeoning luxury ecosystem.”
The Dubai Multi Commodities Centre (DMCC) also played a pivotal role in connecting stakeholders as part of this ecosystem’s development. Ahmed Bin Sulayem noted that the DMCC serves as a “bridge between commodities, capital, and next-generation digital markets,” further underlining their coordination with VARA to solidify the foundation for this rollout.
Robert Farquhar from Ctrl Alt remarked that the collaboration with Billiton necessitated a robust and compliant infrastructure capable of managing the complexities associated with the polished diamond supply. He emphasized, “Our proven tokenization expertise and technology provide a clear, secure, and compliant route for diamond ownership to move on-chain, from asset origination to digital market participation. This establishes a more accessible and operationally efficient model for commodity investment in the UAE.”
At press time, XRP was trading at $1.60, reflecting ongoing market engagement and interest in this innovative integration of blockchain technology within traditional commodity sectors.
