The Dubai Land Department (DLD) has unveiled its inaugural blockchain platform for real estate, named Prypco Mint, which utilizes the XRP Ledger. This initiative aims to revolutionize the property market in Dubai by enabling tokenized real estate transactions.
Transaction payments will be secured by Ripple Custody, with the XRP Ledger facilitating seamless on-chain transactions. This announcement has coincided with a slight increase in the price of XRP, which is currently trading at approximately $1.43, reflecting a 2% rise in recent trading sessions.
The Prypco Mint project is part of a broader digital transformation strategy by the DLD, targeting the digitization of $16 billion worth of real estate by the year 2033. In collaboration with Dubai-based prop-tech firm Prypco, the platform will initially allow investors to acquire fractional ownership of properties in local currency, starting at 2,000 dirhams (approximately $540).
Initially, this platform will cater exclusively to residents of the United Arab Emirates (UAE) who possess a valid Emirates ID, and transactions will only be accepted in AED. However, plans for international expansion and broader platform integration are already in the pipeline, according to sources.
The DLD”s recent announcement highlights a significant strategic development in Dubai”s real estate landscape. Following the successful tokenization of $5 million worth of property, the DLD is set to initiate the second phase of a pilot program aimed at real estate tokenization. During this pilot, approximately 7.8 million tokens representing fractional ownership in various properties were made available for resale, with properties selling out in under two minutes.
In partnership with Ctrl Alt, a London-based technology provider, the project will also issue Asset-Referenced Virtual Asset management tokens, which will facilitate secondary-market transfers of these tokens.
Analysts have noted that Dubai”s favorable regulatory environment for cryptocurrencies and its burgeoning property market have positioned the city as a global leader in real estate innovation. The DLD”s blockchain initiative is seen as a pivotal step towards integrating advanced financial technologies into the real estate sector.
Furthermore, Zand Digital Bank has been designated as the banking partner for this venture, with oversight from the UAE Central Bank, the Dubai Virtual Assets Regulatory Authority (VARA), and the Dubai Future Foundation. The latter will leverage its dedicated PropTech Sandbox to test and scale innovative real estate technologies.
Matt Ong, Founder and CEO of Ctrl Alt, expressed enthusiasm for building the tokenization infrastructure that enables fractional real estate opportunities for investors. He emphasized Dubai”s leadership in adopting advanced financial technologies, marking this project as a signal for promising developments ahead.
Sources familiar with the situation noted that the choice of the XRP Ledger was influenced by its rapid transaction speeds and low fees, alongside its compliance with local regulations. This interest in the XRPL infrastructure reflects a broader trend, as Ripple has invested significantly in developing this ecosystem for institutional and enterprise applications.
In the past year, tokenization on the XRP Ledger has reportedly surged by over 2,200%, driven by transparent regulations following a pivotal SEC decision and new partnerships, including collaborations with Archax and Ripple”s acquisition of Hidden Road.
The growing adoption of XRP in the decentralized finance (DeFi) space raises questions about its potential to continue driving value in the market throughout the year.
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