6 days ago
Dubai Launches First Tokenised Real Estate Investment Platform
Dubai Land Department (DLD), in partnership with Prypco, has launched the region's first tokenised real estate investment project through the 'Prypco Mint' platform.
The initiative is being implemented in collaboration with the Virtual Assets Regulatory Authority (VARA), the Central Bank of the United Arab Emirates (CBUAE), and the Dubai Future Foundation (DFF) as part of the Real Estate Sandbox.
Zand Digital Bank has been appointed as the banking partner for the pilot phase.
UAE ID holders can now invest in tokenised real estate from AED 2,000
The project marks the activation of the digital platform offering individuals the opportunity to invest in ready-to-own properties in Dubai through tokenised shares.
The platform is currently available to UAE ID holders, with plans for global expansion and additional platform integrations in future phases.
The initiative is aligned with the Dubai Real Estate Sector Strategy 2033 and the Dubai Economic Agenda D33, which aims to position Dubai as a hub for smart real estate investment.
Investors can begin investing from AED2,000, with all transactions conducted exclusively in UAE Dirhams.
Cryptocurrencies will not be used during the pilot phase. The platform provides detailed information about each property, including pricing, risk factors, technical specifications, and minimum investment requirements.
The project is a result of a strategic agreement between DLD, Prypco, and Ctrl Alt Solutions. It aims to create a regulatory and operational framework for real estate tokenisation.
The agreement focuses on legislation development, knowledge promotion, attracting tokenisation companies, and investor protection.
According to current projections, tokenised assets could account for up to 7 per cent of Dubai's real estate market by 2033, equivalent to AED 60 billion ($16 billion). Prypco Mint is expected to be central to this transformation.
Regulatory oversight is being provided by DLD for physical real estate and VARA for digital assets, ensuring an integrated and transparent approach.
DLD's tokenised property platform ensures CMA-based fund protection
The Central Bank of the UAE oversees corporate accounts through the Client Money Account (CMA) system.
Under this system, investor funds are deposited in CMAs and are only transferred after the purchase process is complete, which are safeguarded until the transaction is finalised.
The platform facilitates access for individual investors, allowing them to earn returns from both rental income and capital appreciation.
Ownership is legally documented by DLD, and investors are not required to manage the properties directly.
Currently, the pilot phase includes only ready-to-own properties. Tokenisation is permitted solely through companies licensed by VARA.
DLD is responsible for verifying the fairness of property pricing before listing. Prypco and Ctrl Alt are the two companies authorised for the pilot, with more firms expected to join in future phases.
This initiative forms part of the Real Estate Evolution Space Initiative (REES), launched earlier by DLD to support PropTech and AI developments.
The REES initiative promotes a legislative environment that attracts talent and startups to the sector.
Source Arabian Business
