A consortium of UAE-based Billiton Diamond and digitization firm Ctrl Alt has completed the tokenization of over AED 1 billion ($280 million) in certified polished diamonds on the XRP Ledger (XRPL). The initiative uses Ripple's enterprise-grade custody technology to secure the physical assets stored off-chain.
DMCC Backs End-to-End Digitization, VARA Approval Pending
Dubai's DMCC played a key role in supporting the project, reinforcing the emirate's position as a global hub for commodity-digital token convergence. The end-to-end process covers inventory, certification, custody, and on-chain representation. Each token maps to a real, certified diamond with origin, grading, certification, and ownership history immutably recorded on-chain for easy verification.
XRPL was chosen for its fast settlement, low transaction fees, and scalable design. Ripple's custody solution ensures the backing diamonds remain securely stored and auditable. Tokenization addresses traditional diamond illiquidity and verification hurdles by enabling transparent ownership, faster settlement, and clearer provenance records.
Billiton plans to launch a dedicated tokenized diamond platform, enabling real-time inventory management and preparing for primary and secondary market listings, pending approval from Dubai's Virtual Assets Regulatory Authority (VARA).
This marks a significant expansion from XRPL's prior diamond tokenization efforts, which totaled $109 million, demonstrating steady growth in the asset class.
RWA Market Hits $14.9B On-Chain; Trillion-Dollar Forecast by 2030
Diamond tokenization is part of a broader real-world asset (RWA) trend. According to DefiLlama, the sector currently holds approximately $14.885 billion in on-chain value, with industry estimates projecting the global RWA market could exceed $1 trillion by 2030 as institutions seek more efficient ways to manage physical assets. XRPL's earlier diamond projects and the latest billion-AED deal signal accelerating institutional adoption.
Physical Asset Tokens: Complement, Not Competitor to Digital Tokens
Exchanges like Binance, Coinbase, and Bitget have also launched tokenized precious metals. A common industry question is whether tokenized physical assets will cannibalize demand for purely digital tokens. Analysts view them as complementary: physical-asset tokens attract risk-averse users seeking stability, while native digital tokens continue driving DeFi innovation and ecosystem activity. The coexistence of both categories is expected to broaden the crypto market's appeal and total addressable base.