Editor’s Note
This article highlights a significant step in asset tokenization, with over $280 million in diamonds now represented on the XRP Ledger. It underscores the growing trend of using blockchain to bring transparency and efficiency to traditional markets.
Billiton Diamond and tokenization firm Ctrl Alt have tokenized certified polished diamonds worth over 1 billion AED (approximately $280 million) on the XRP Ledger (XRPL), utilizing Ripple Custody for institutional-grade security. This initiative aims to make diamond trading more transparent, faster, and easier to verify, demonstrating how real-world assets can be transitioned into regulated digital markets.
Billiton Diamond specializes in diamond auctions and supply chains, while Ctrl Alt provides the technology to convert physical assets into digital tokens. Together, they developed a process where each diamond receives a digital representation on the XRPL, linked to real-world inventory and certification data. This allows buyers to verify a stone’s origin, valuation, and previous ownership.
Ripple’s custody system safeguards the digital assets, adding an extra layer of security. The involved companies emphasize that this makes diamonds more tradable and traceable while reducing paperwork and manual verification, potentially making the diamond market more transparent and less sluggish.
The XRP Ledger was selected for this project due to its cost and speed efficiency. XRPL features very low fees and processes transactions within seconds, which is crucial for moving high-value assets on-chain and for creating and transferring many tokens simultaneously. In the first phase, Ctrl Alt has tokenized diamonds worth over 1 billion AED. The platform is envisioned to eventually integrate features like secondary market trading and transfers.
However, these steps require regulatory approval before launch. The Dubai regulator VARA will review the system before it is released to the public. Dubai’s major trading hub, DMCC, supported the development of the framework and networking of partners. Stakeholders see this as an example of how commodities and digital financial solutions can collaborate in the UAE.
This project transforms diamonds into a more liquid digital asset. Diamonds are typically difficult to trade quickly, and public data and transparent price discovery are often lacking—issues that tokenization can address. Instead of sitting permanently in vaults, each stone becomes a digital unit transferable between custodians. For Ripple, this cooperation showcases another application of its technology beyond payments and underscores that blockchains can represent high-value goods, not just crypto tokens.
Industry observers see this as a potential trailblazer for other assets like gold, art, or rare metals. The $280 million tokenization project thus marks a significant step for real-world assets on the blockchain, combining the speed of blockchain with trust from the physical world. If scaled successfully, it could transform the trade of luxury goods and commodities in the long term.