The Dubai Land Department (DLD), a government agency for the real estate sector, launched its first tokenized real estate platform as part of an effort supported by the government which could see 16 billion dollars of real estate digitized by 2033.
The platform, called PRYPCO MINT and developed in partnership with the company Immobilière Fintech PRYPCO, allows investors to buy a fractional property in the properties of Dubai using the local currency from 2000 dirhams, or about $ 540, according to a press release on Sunday from the agency.
In the initial phase, the platform only supports Dirham transactions and is available for the identity card holders of the United Arab Emirates, but the agency said it planned to develop access to the world in the near future and to integrate more platforms later. Zand Digital Bank is as a banking partner, while regulatory surveillance comes from the Central Water Bank, from the Dubai virtual asset regulatory authority (VARA) and the Dubai Future Foundation via its real estate tank.
The technical backbone of the project is the infrastructure of the CTRL Alt tokenization specialist, which has selected the XRP Ledger blockchain to place the title deeds. The company said it had integrated directly into DLD systems to ensure that blockchain files remain in synchronization with the real estate registers of the traditional government.
The launch is based on the initiative of Dubai which aims to accelerate tokenization, a cryptographic trend heated by the red, from the booming real estate market of the city. The agency has planned that tokenized real estate could represent 7%, around $ 16 billion, total real estate transactions in the city by 2033.
Tokenization means use of blockchains to move and record the ownership of traditional financial instruments such as bonds, funds or real estate, attracting a multitude of world banks and asset managers with the promise of operational gains and faster and cheaper establishments. This could be a huge opportunity: tokenized assets could go to a market of several dollars of dollars in the coming years, as planned by Ripple, BCG, McKinsey and others.
Read more: Ripple, BCG Project $ 18.9 The tokenized asset market by 2033
