Key Insights Dubai-based diamond management company Billiton Diamonds and leading tokenization firm Ctrl Alt have collaborated to tokenize 1 billion AED ($280 millionKey Insights Dubai-based diamond management company Billiton Diamonds and leading tokenization firm Ctrl Alt have collaborated to tokenize 1 billion AED ($280 million

Ripple Technology Used for Tokenization of Diamonds

3 min read

Key Insights

  • Billiton Diamonds and Ctrl Alt have partnered to tokenize polished diamonds with plans for secondary market offerings.
  • The firms are using XRP Ledger and Custody for tokenization and securing the $280 million in tokenized assets.
  • XRPL is becoming a tokenization heavyweight even as XRP token struggles with the rest of the market.

Dubai-based diamond management company Billiton Diamonds and leading tokenization firm Ctrl Alt have collaborated to tokenize 1 billion AED ($280 million) worth of polished diamonds in the United Arab Emirates.

In an announcement today, the companies disclosed that they are using Ripple’s custody technology for the transaction. The move represents a massive step in commodities tokenization in the UAE.

Billiton to Launch Tokenized Diamonds Platform with Ripple Providing Custody

According to the announcement, the firms have already completed the initiative’s first phase. Ctrl Alt is providing the end-to-end tokenization, while Bitlliton is set to launch a blockchain-based platform for the management and trading of the tokenized diamonds.

With the tokenization of the commodities already complete, the next phases of the project will focus on custody and transfer. It is also preparing for primary and secondary market offerings.

Interestingly, the firms used the XRP Ledger (XRPL) for the tokenization of polished diamonds, citing its low fees, fast settlement, and scalable architecture.

Beyond using XRPL for tokenization, the tokenized assets are also being secured with Ripple custody technology. The company’s managing director for Middle East and  Africa, Reece Merrick, noted the importance of enterprise-grade security standards for the tokenization of commodities.

He said:

“Our custody technology provides the rigorous security required to manage these assets at scale, proving that high-value physical assets can be moved on-chain with absolute confidence. Alongside Billiton Diamond and Ctrl Alt, we are proud to set a new precedent for commodities trading in the digital age.”

Meanwhile, the project has been approved by the Dubai Virtual Assets Regulatory Authority (VARA) for its pilot phase. The Dubai Multi Commodities Center (DMCC), the country’s leading free zone, is also one of the project’s partners.

XRP Slips Further Even Despite XRPL Adoption

Meanwhile, the project, which is still in its pilot phase, represents another boost to tokenization on the XRP Ledger. The network has already seen substantial growth in real-world asset (RWA) tokenization, with around $500 million in tokenized assets.

However, the positive developments on XRPL and the adoption of Ripple Custody have had little impact on XRP’s value. The token has seen its price plunge over the past 24 hours, down 2.4% to $1.6.

XRP struggles. Source: CoingeckoXRP struggles. Source: Coingecko

It has now fallen by more than 20% over the past 30 days, with a 15% decline year-to-date. Still, its performance aligns with the rest of the market, with Bitcoin slumping to $76,000, dragging the broader crypto market down.

Despite the decline in value, XRP holders might be able to earn yield on their tokens after Flare network introduced lending of XRP-linked assets. By integrating with the Morpho protocol, Flare enables users to lend and borrow Flare XRP (FXRP), which is compatible with EVM blockchains.

The post Ripple Technology Used for Tokenization of Diamonds appeared first on The Market Periodical.

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