A special project in the United Arab Emirates (UAE) has announced that it has reached a special milestone. They have already tokenized $280 million worth of diamonds on the XRP Ledger, so that they can actually be traded at a later stage. But before that happens, there are still some legal hurdles to overcome.
$280 million in diamonds tokenized
On Tuesday, Billiton Diamond and the tokenization company Ctrl Alt announced that they have now taken a major step towards the trading of certified diamonds via the blockchain.
They have already tokenized AED 1 billion worth of diamonds. This equates to a value of more than $280 million.
The companies use Ripple’s security services to adequately secure the process, while the XRP Ledger is used to create new tokens. The goal is to create an institutional tokenization line for certified diamonds stored in the UAE.
Waiting for approval and more clarity
By using blockchain technology, the companies hope to speed up trade and make it more transparent. But to officially launch the actual trade, there are still a number of hurdles to overcome. These are mainly in the legal field.
The Virtual Assets Regulatory Authority (VARA) in Dubai still has to grant approval for the service. Only this makes it possible to scale up and roll out the project more widely.
In addition, there are other matters that must be arranged in advance. For example, there is still uncertainty about how, for example, the management of the diamonds, the execution of transactions, the repurchase of the assets and the minimum sizes of purchases will be handled. All information that must be clear in advance for a successful launch.
RWAs have a future in Dubai
The Dubai Multi Commodities Center (DMCC), which includes several companies dealing in a variety of sectors, has also been involved in this project. They are said to have played a coordinating role in which various parties were brought together and support the ecosystem surrounding the tokenization of raw materials.
The UAE wants to further develop “real-world assets” (RWAs). So that it can actually become a completely new business sector in the future. Last year, real estate was also tokenized in the country. By taking an active stance in the development of RWAs, they ultimately hope to take a leading role in the world.
Source: https://newsbit.nl/cryptobedrijf-brengt-fortuin-aan-diamanten-naar-xrp-netwerk/
