Ripple Tokenizes $280 Million In Dubai Diamonds—Here's How It Works

Through a concern with Billiton Diamond and tokenization steadfast Ctrl Alt, Ripple-backed custody exertion secured $280 cardinal successful polished diamonds connected the XRP (CRYPTO: XRP) Ledger, the companies announced Tuesday successful Dubai.

Billiton Diamond and Ctrl Alt moved implicit AED 1 cardinal ($280 million) worthy of certified polished diamonds on-chain successful the UAE.

Ripple’s endeavor custody tools unafraid the carnal diamonds, portion the XRP Ledger creates integer tokens representing ownership.

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Adding to its infrastructure push, Ripple secured afloat Electronic Money Institution support from Luxembourg’s fiscal regulator past week, pushing its planetary regulatory approvals beyond 75.

This follows caller UK approvals, reinforcing Ripple’s presumption arsenic 1 of the astir heavy licensed crypto firms.

The broader level motorboat requires support from Dubai’s Virtual Assets Regulatory Authority (VARA).

Until then, the $280 cardinal represents a controlled aviator alternatively than an unfastened marketplace.

Critical details stay unclear.

The companies did not explicate however idiosyncratic holding a diamond token would redeem it for the carnal stone, what the minimum acquisition size would be, oregon however idiosyncratic stones get priced—all indispensable for existent trading.

Dubai’s DMCC coordinated the task arsenic the emirate positions itself arsenic a hub for tokenizing real-world assets similar commodities and luxury goods.

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Creating blockchain tokens for diamonds is the casual part.

The harder situation is gathering a marketplace wherever these tokens really commercialized with reliable prices and creaseless redemptions.

Each diamond is unique, with idiosyncratic characteristics affecting value—cut, clarity, color, and carat weight.

This makes pricing much analyzable than tokenizing golden oregon oil, wherever units are identical and fungible.

The companies acknowledged this hurdle, mentioning a longer improvement timeline for features similar custody transfers and secondary-market trading.

However, without factual plans for redemption mechanics and pricing, questions stay astir moving beyond the aviator phase.

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