By way of a partnership with Billiton Diamond and tokenization agency Ctrl Alt, Ripple-backed custody expertise secured $280 million in polished diamonds on the XRP (CRYPTO: XRP) Ledger, the businesses introduced Tuesday in Dubai.
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The Diamond Tokenization Setup
Billiton Diamond and Ctrl Alt moved over AED 1 billion ($280 million) value of licensed polished diamonds on-chain within the UAE.
Ripple’s enterprise custody instruments safe the bodily diamonds, whereas the XRP Ledger creates digital tokens representing possession.
Including to its infrastructure push, Ripple secured full Digital Cash Establishment approval from Luxembourg’s monetary regulator final week, pushing its world regulatory approvals past 75.
This follows latest UK approvals, reinforcing Ripple’s place as some of the closely licensed crypto companies.
The Regulatory Roadblock
The broader platform launch requires approval from Dubai’s Digital Property Regulatory Authority (VARA).
Till then, the $280 million represents a managed pilot quite than an open market.
Important particulars stay unclear.
The businesses didn’t clarify how somebody holding a diamond token would redeem it for the bodily stone, what the minimal buy measurement can be, or how particular person stones get priced—all important for actual buying and selling.
Dubai’s DMCC coordinated the challenge because the emirate positions itself as a hub for tokenizing real-world belongings like commodities and luxurious items.
The Buying and selling Problem
Creating blockchain tokens for diamonds is the simple half.
The tougher problem is constructing a market the place these tokens really commerce with dependable costs and easy redemptions.
Every diamond is exclusive, with particular person traits affecting worth—reduce, readability, colour, and carat weight.
This makes pricing extra advanced than tokenizing gold or oil, the place models are equivalent and fungible.
The businesses acknowledged this hurdle, mentioning an extended growth timeline for options like custody transfers and secondary-market buying and selling.
Nevertheless, with out concrete plans for redemption mechanics and pricing, questions stay about transferring past the pilot section.
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