The Dubai Land Department (DLD), a government agency for the real estate industry, launched its first tokenized real estate platform as part of an effort backed by the government that could see $ 16 billion in digitalized real estate by 2033.
The platform, called Prypco Mint and developed in association with the real estate firm of real estate Prypco, allows investors to buy fractional property in Dubai properties using local currency from 2,000 Dirhams, or around $ 540, according to a press release from Sunday by the agency.
In the initial phase, the platform only supports Dirham transactions and is available for ID card holders of the United Arab Emirates, but the agency said it plans to expand worldwide access in the near future and integrate more platforms later. Zand Digital Bank serves as a banking partner, while regulatory supervision comes from the Central Bank of the EAU, the Dubai Virtual Assets Regulatory Authority (Vara) and the Dubai Future Foundation through its real estate box.
The technical backbone of the project is the infrastructure of the CTRL ALT tokenization specialist, which has selected the block chain of the XRP main book to place the property titles. The company said it has been directly integrated with DLD systems to ensure that blockchain records remain synchronized with the real estate books of the traditional government.
The launch is based on the Dubai initiative that aims to accelerate the tokenization, a cryptographic red trend of the city’s real estate market. The agency projected that tokenized real estate could represent 7%, approximately $ 16 billion, of the total property transactions of the city by 2033.
Tokenization means using blockchains to move and record the property of traditional financial instruments such as bonds, funds or real estate, attracting a series of world banks and managers with the promise of operational profits and faster and more cheaper agreements. It could be a great opportunity: tokenized assets could grow to a multiple billion market in the coming years, as projected by Ripple, BCG, McKinsey and others.
Read more: RIPPLE, BCG $ 18.9T Project tokenized Assets Market for 2033
