Editor’s Note
This article explores a significant step in asset digitization, where over $280 million in diamonds have been tokenized on the XRP Ledger. This initiative aims to enhance the transparency, speed, and verification of diamond trading, illustrating the growing convergence of physical assets and regulated digital markets.
Billiton Diamond and tokenization firm Ctrl Alt have tokenized over AED 1 billion, equivalent to approximately $280 million, in certified polished diamonds. The tokens are created on the XRP Ledger (XRPL). The goal is to make diamond trading more open, faster, and easier to verify. This move also demonstrates how real-world assets can be integrated into digital markets in a regulated manner.
Billiton Diamond handles diamond auctions and supply, while Ctrl Alt provides the technology that converts physical assets into digital tokens. Both companies worked together to develop a process that assigns each diamond a digital version on the XRPL. Real inventory and certification data are linked to these tokens, allowing buyers to verify the stone’s origin. Furthermore, they can check how it was graded and who owned it previously.
Ripple’s custody system protects the digital assets, adding an extra layer of security. The companies state that this facilitates the trading and tracking of diamonds while reducing paperwork and manual verifications. This means the diamond market can become more transparent and less sluggish.
The XRP Ledger is used in the project due to its cost and speed. XRPL charges very low fees and processes transactions in a matter of seconds, which is crucial when moving high values on-chain. It is also useful when creating and transferring multiple tokens simultaneously. In the first phase, Ctrl Alt has tokenized over AED 1 billion in diamonds. The platform aims to include features such as trading on future secondary markets and transfers.
However, these steps will need regulatory approval before launch. Dubai’s regulator, VARA, will review the system before it is available for public use. Dubai’s main trading hub, DMCC, helped create the framework and connect the partners. The group notes that this demonstrates how commodities and digital finance can coexist in the UAE.
This project transforms diamonds into a more liquid digital asset. Typically, diamonds are difficult to trade quickly and lack public data and clear prices, something tokenization can change. Instead of remaining stored in vaults, each stone now becomes a digital unit that can move between warehouses. For Ripple, this deal shows another real-world use of its technology beyond payments and supports the idea that blockchains can handle high-value goods, not just crypto tokens.
Industry experts point out that this could open the door for other assets, such as gold, art, or rare metals, to follow the same path. Therefore, the $280 million diamond tokenization effort represents a significant step for physical assets to enter the chain, combining blockchain speed with real-world trust. If it works on a large scale, it could change how luxury goods and commodities are traded in the future.