Dubai has taken another step towards the digitalization of its real estate markets. On February 20, Dubai Land Department (DLD) and tokenization company Ctrl Alt announced phase two of the city’s real estate tokenization project. The new phase introduces controlled trading to the secondary market for tokenized properties on the $XRP General ledger.
The update follows an earlier pilot that saw 10 properties worth more than $5 million tokenized. With secondary trading you now live in a regulated testing environment. Officials aim to improve liquidity and expand investor access. Ripple Custody continues to secure the assets in the chain through the project’s infrastructure partners.
Phase two unlocks secondary trading
Phase two marks a major upgrade compared to the first pilot. During phase one, the project focused primarily on minting and issuing title tokens. Now investors can resell eligible tokens within a controlled secondary market. Approximately 7.8 million previously issued tokens are now tradable within the regulated framework.
I’m excited to see the launch of phase two for the Dubai @Land_Department Real Estate Tokenization Project! Building on the pilot, controlled secondary market trading is now live for tokenized properties on the $XRP Ledger, secured by @Ripple Custody through our partner @CtrlAltCo
This is huge…
— Reece Merrick (@reece_merrick) February 20, 2026
It is important that strict supervision of the trading environment remains. Officials designed the phase to test market efficiency while protecting investors. Trades continue to run on the XRPLedger. While property details remain synchronized with Dubai’s official land registry. This approach aims to combine the speed of blockchain with traditional legal certainty.
How the infrastructure works
Ctrl Alt acts as the main infrastructure partner for tokenization. The company originally minted the title deeds and now powers the secondary market engine. The system integrates directly with DLD databases. It allows ownership of real estate to move within the chain, while remaining legally recognized outside the chain. For phase two, the platform is introducing Asset-Referenced Virtual Asset (ARVA) management tokens. These work together with the original ownership tokens.
Together they create one immutable ownership record. Because Ctrl Alt has a Virtual Asset Service Provider license and a broker-dealer license. The project operates within Dubai’s regulated digital assets framework. Company executives emphasized that secondary trading is essential for the tokenization of assets to mature in the real world. Without post-issuance liquidity, tokenized assets often remain limited in usability.
Dubai is pushing its real-world real estate strategy
The expansion highlights Dubai’s broader ambition to lead the way in symbolic real estate. The emirate has been steadily working towards regulatory clarity through VARA and other digital asset initiatives. By combining government surveillance with blockchain rails, officials hope to attract global capital to the real estate markets. Tokenization could lower barriers to entry for investors who cannot purchase entire properties. Fractional ownership models can also increase market participation. At the same time, keeping the pilot monitored allows regulators to study the risks before scaling up further.
What comes next
For the time being, phase two remains a structured pilot and not a fully open market. However, the launch signals growing confidence in blockchain-based real estate infrastructure. If the secondary market functions smoothly, Dubai could expand the program significantly. This move reinforces a broader global trend toward tokenization of real-world assets. Yet long-term success will depend on liquidity, user adoption and regulatory consistency. For the time being, Dubai has clearly positioned itself at the front of the race.