Ripple-Backed Custody Fuels $280 Million Diamond Tokenization in UAE
By John Nada·Feb 3, 2026·2 min read
Ripple-backed custody has launched a $280 million diamond tokenization project in the UAE, leveraging blockchain for asset security and efficiency.
Ripple-backed custody has secured a staggering $280 million diamond tokenization initiative in the UAE. The project has already transitioned over $280 million worth of polished diamonds onto the blockchain in Dubai. Billiton Diamond and tokenization firm Ctrl Alt have utilized Ripple's custody technology to ensure asset security while leveraging the XRP Ledger to mint tokens associated with physical diamond inventory.
This initiative is being positioned as an institutional-grade tokenization pipeline for polished stones in the UAE, highlighting a significant leap in asset digitization. While the companies tout faster settlement and clearer provenance data, they face a crucial hurdle: regulatory clearance. A broader platform launch and any movement towards wider distribution will require approval from Dubai’s Virtual Assets Regulatory Authority (VARA).
Ripple's enterprise custody tools are set to secure the tokenized inventory, with the XRPL managing issuance and transfers. This strategic placement positions Ripple in the plumbing layer of tokenization rather than the marketplace layer. This distinction is critical; the real challenge in tokenized commodities lies not just in minting tokens but in ensuring meaningful trading with tight spreads, reliable pricing, and clear redemption mechanics.
The firms have indicated a roadmap of “lifecycle” features such as custody and secondary-market readiness. However, details regarding redemption processes, minimum lot sizes, and pricing for individual stones remain undisclosed. These elements are vital for any market aspiring to move beyond a controlled pilot phase.
Dubai's DMCC has played a pivotal role by connecting stakeholders and fostering the ecosystem around commodities tokenization. As the emirate pushes to make real-world assets (RWAs) a legitimate business line, the implications for the market are profound.
This development underscores a growing trend of integrating blockchain technology into traditional asset markets, enhancing transparency and efficiency. As the project progresses towards regulatory approval, it could pave the way for broader acceptance and innovation in tokenized asset trading.