Dubai has taken another step towards digitalizing its real estate market. On February 20, Dubai Land Department (DLD) and tokenization company Ctrl Alt announced the second phase of the city’s real estate tokenization project. The new phase will introduce managed secondary market trading of tokenized real estate. $XRP ledger.
This update follows a previous pilot that tokenized 10 properties worth over $5 million. Secondary trading is currently taking place in a regulated test environment. Authorities aim to improve liquidity and expand investor access. Ripple Custody continues to secure on-chain assets through the project’s infrastructure partners.
Phase 2 allows secondary trading
Phase 2 represents significant upgrades from the initial pilot. In Phase 1, the project primarily focused on minting and issuing real estate title tokens. Investors can now resell their eligible tokens within a managed secondary market. Approximately 7.8 million previously issued tokens are now tradable within the regulatory framework.
Excited to see the launch of phase 2 of the Dubai @Land_Department real estate tokenization project! Based on the pilot, controlled secondary market transactions are now taking place for tokenized real estate. $XRP Ledger, secured by @Ripple Custody via partner @CtrlAltCo
This is massive…
— Reece Merrick (@reece_merrick) February 20, 2026
Importantly, the trading environment continues to be closely monitored. Authorities designed this stage to test market efficiency while protecting investors. Transactions continue to run on the XRPLedger. Meanwhile, ownership records remain synchronized with Dubai’s official land registry. This approach aims to blend the speed of blockchain with traditional legal certainty.
How the infrastructure works
Ctrl Alt serves as a core tokenization infrastructure partner. The company originally minted title deed tokens, but now powers a secondary market engine. Its system is directly integrated with the DLD database. This allows ownership of real estate to be moved on-chain while remaining legally recognized off-chain. In Phase 2, the platform will introduce the Asset Reference Virtual Asset (ARVA) management token. These work alongside the original ownership token.
Together they create a single, immutable ownership record. Because Ctrl Alt holds a virtual asset service provider license and a broker-dealer license. The project operates within Dubai’s regulated digital asset framework. Company executives emphasized that secondary trading is essential for real-world asset tokenization to mature. Without post-issuance liquidity, tokenized assets often remain of limited utility.
Dubai advances real-world asset strategy
The expansion highlights Dubai’s broader ambitions to lead in tokenized real estate. The emirate has steadily built regulatory clarity through VARA and other digital asset initiatives. Officials hope to attract global capital to the real estate market by combining government oversight with blockchain rails. Tokenization has the potential to lower the barrier to entry for investors who cannot purchase real estate outright. Fractional ownership models may also increase market participation. At the same time, maintaining control over the pilot allows regulators to consider risks before scaling it up further.
what happens next
For now, Phase 2 remains a structured pilot rather than a fully open market. However, this launch shows that there is growing confidence in blockchain-based real estate infrastructure. If the secondary market functions well, Dubai could significantly expand the program. This move reinforces a broader global trend towards the tokenization of real-world assets. Still, long-term success will depend on liquidity, user adoption, and regulatory consistency. For now, Dubai is clearly positioned near the front of the race.
