Ripple custody technology backs major diamond tokenization pilot in Dubai

In Dubai, a new institutional pilot is using diamond tokenization to move high-value stones on-chain while testing the limits of virtual asset regulation.

Over $280 million in polished diamonds moved on-chain

Billiton Diamond and tokenization firm Ctrl Alt have moved more than $280 million in certified polished diamonds on-chain in the UAE, using Ripple‘s custody technology and the XRP Ledger (XRPL).

The firms said they have already tokenized over AED 1 billion ($280 million) in polished diamond inventory held in the UAE. Moreover, each token is tied to physical stock of certified stones, positioning the project squarely in the real-world asset segment.

Institutional-grade pipeline awaiting VARA regulatory green light

The initiative is framed as an institutional-grade tokenization pipeline for polished stones, aimed at faster settlement and clearer diamond provenance data. However, a broader platform rollout and any move toward wider distribution will depend on approval from Dubai’s Virtual Assets Regulatory Authority (VARA).

That said, the next phase is not purely technical. A full-scale launch, deeper liquidity and broader access to these polished stone tokens all require VARA regulatory approval before the project can move beyond its controlled pilot stage.

Ripple’s role: custody and infrastructure, not marketplace

The companies said Ripple‘s enterprise custody tools will secure the tokenized diamond inventory, while the XRPL will handle token issuance and transfers. In practice, that places Ripple at the infrastructure or plumbing layer rather than in the trading venue itself.

However, the harder challenge in tokenized commodities is rarely the minting of tokens. Instead, the real test is whether such assets can trade meaningfully with tight spreads, reliable pricing and clear diamond redemption mechanics for institutional users.

Key market details still unclear for polished diamond tokens

While the project is being positioned as a route to faster settlement and better transparency for polished diamond tokens, several crucial market parameters remain undisclosed. Moreover, investors still lack clarity on how an eventual trading venue would handle different stone grades and certificates.

The firms have pointed to a longer roadmap of lifecycle features such as custody, transfers and secondary market readiness. That said, they have not yet detailed how redemptions would work, what minimum lot sizes will be, or how pricing will be set for individual stones, all of which are critical for any institutional market.

XRPL and real-world asset push in Dubai

Within this structure, XRPL custody solutions are being used to underpin the token infrastructure while keeping the marketplace layer separate. However, the success of this approach will ultimately depend on whether institutional buyers and liquidity providers see enough transparency and operational clarity.

Dubai’s DMCC said it played a coordinating role by connecting stakeholders and supporting the broader ecosystem around commodities tokenization. Moreover, the emirate is pushing to make real-world assets, including polished stones, a sustainable business line rather than a one-off experiment.

Outlook for real-world asset tokenization of diamonds

As these polished stones move on-chain via diamond tokenization, the project highlights both the promise and the complexity of linking physical commodities to digital markets. However, without concrete details on trading, pricing and redemption, the initiative will remain a tightly controlled pilot rather than a fully tradable asset class.

For now, the combination of Ripple custody technology, UAE-based inventory and Dubai’s regulatory framework offers a high-profile test case for tokenized commodities. Its evolution over the coming phases will show whether institutional demand can match the technical ambition of the design.