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The Diamond Tokenization SetupBilliton Diamond and Ctrl Alt moved over AED 1 billion ($280 million) worth of certified polished diamonds on-chain in the UAE. 

Ripple’s enterprise custody tools secure the physical diamonds, while the XRP Ledger creates digital tokens representing ownership.

Adding to its infrastructure push, Ripple secured full Electronic Money Institution approval from Luxembourg’s financial regulator last week, pushing its global regulatory approvals beyond 75. 

This follows recent UK approvals, reinforcing Ripple’s position as one of the most heavily licensed crypto firms.

The Regulatory RoadblockThe broader platform launch requires approval from Dubai’s Virtual Assets Regulatory Authority (VARA). 

Until then, the $280 million represents a controlled pilot rather than an open marketplace.

Critical details remain unclear.

The companies did not explain how someone holding a diamond token would redeem it for the physical stone, what the minimum purchase size would be, or how individual stones get priced—all essential for real trading.

Dubai’s DMCC coordinated the project as the emirate positions itself as a hub for tokenizing real-world assets like commodities and luxury goods.

The Trading ChallengeCreating blockchain tokens for diamonds is the easy part.

The harder challenge is building a marketplace where these tokens actually trade with reliable prices and smooth redemptions.

Each diamond is unique, with individual characteristics affecting value—cut, clarity, color, and carat weight. 

This makes pricing more complex than tokenizing gold or oil, where units are identical and fungible.

The companies acknowledged this hurdle, mentioning a longer development timeline for features like custody transfers and secondary-market trading. 

However, without concrete plans for redemption mechanics and pricing, questions remain about moving beyond the pilot phase.

Image: Shutterstock

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