Dubai becomes a pioneer: First real estate token now available!

Dubai becomes a pioneer: First real estate token now available!

Dubai has announced the launch of an innovative real estate tokenization program in the Middle East, aiming to lead the way in the region. The project, led by the Dubai Land Department (DLD) in collaboration with the Central Bank and the Dubai Future Foundation, allows investors to purchase digital shares in local real estate starting from 2,000 dirhams (approximately $545) through the Prypco Mint platform, such as cryptodnes.bg reported.

With over 3,000 interested parties on the waiting list, participation in the program is limited to UAE ID holders. Tokenization aims to enable fractional ownership of government real estate using blockchain technology. The project uses Ripple's XRP Ledger, which is also used by krypto-magazin.de is confirmed.

Improving liquidity and accessibility

The initiative is not only a technological advancement, but also a significant step towards improving liquidity and accessibility in Dubai's real estate sector. Supported by updated regulations from crypto regulator VARA, the program allows real estate tokens to be traded on secondary markets. The background is the increase in crypto activity in the region, highlighted by a rise in app downloads in the UAE.

Projections for the real estate tokenization market volume by 2033 are an impressive $16 billion to $19.4 billion. Currently, around $3 billion of real estate assets in the UAE have already been tokenized. In fact, Deloitte predicts that the equivalent value of tokenized real estate could exceed $4 billion by 2035.

Future of Institutional Investments

In addition to developments in the real estate industry, Ripple CEO Brad Garlinghouse highlights the potential of crypto ETFs. He sees this as an opportunity for institutional investors and recognizes the growing importance of XRP ETFs in the market. Garlinghouse predicts an 83% chance of a Ripple ETF being approved by the end of 2025, while the odds of near-term approval are 22% by July 31, 2025.

The XRP price is currently around 2 euros and the futures volume is around 30 million. The imminent introduction of futures is seen as a prerequisite for the development of other financial products such as ETFs. Ripple has also announced that XRP futures and ETFs will soon be tradable on major US exchanges, hailing it as a breakthrough for institutional investors.

However, amidst these developments, the XRP market remains characterized by uncertainty. Technical analysts warn of possible selling pressure, while rumors of a possible acquisition of Circle by Ripple fuel speculation.