Dubai has taken another step toward digitizing real estate markets. On February 20, the Dubai Land Department (DLD) and tokenization firm Ctrl Alt announced Phase Two of the city’s real estate tokenization project. The new phase introduces controlled secondary market trading for tokenized properties on the $XRP Ledger.
The update follows an earlier pilot that tokenized 10 properties worth more than $5 million. With secondary trading now live in a regulated test environment. Officials aim to improve liquidity and expand investor access. Ripple Custody continues to secure the on-chain assets through the project’s infrastructure partners.
Phase Two Unlocks Secondary Trading
Phase Two marks an important upgrade from the initial pilot. During Phase One, the project focused mainly on minting and issuing property title tokens. Now, investors can resell eligible tokens inside a controlled secondary market. Roughly 7.8 million tokens issued earlier are now tradable within the regulated framework.
Thrilled to see Phase Two launch for 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 via our partner @CtrlAltCo
This is massive…
— Reece Merrick (@reece_merrick) February 20, 2026
Importantly, the trading environment remains tightly supervised. Officials designed the phase to test market efficiency while protecting investors. Transactions continue to run on the XRPLedger. While ownership records remain synced with Dubai’s official land registry. This approach aims to blend blockchain speed with traditional legal certainty.
How the Infrastructure Works
Ctrl Alt serves as the core tokenization infrastructure partner. The firm originally minted the title deed tokens and now powers the secondary market engine. Its system integrates directly with DLD databases. It allows property ownership to move on-chain while staying legally recognized off-chain. For Phase Two, the platform introduces Asset-Referenced Virtual Asset (ARVA) management tokens. These work alongside the original ownership tokens.
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 stressed that secondary trading is essential for real-world asset tokenization to mature. Without liquidity after issuance, tokenized assets often remain limited in usefulness.
Dubai Pushes Its Real-World Asset Strategy
The expansion highlights Dubai’s broader ambition to lead in tokenized real estate. The emirate has steadily built regulatory clarity through VARA and other digital asset initiatives. By combining government oversight with blockchain rails, officials hope to attract global capital into property markets. Tokenization could lower entry barriers for investors who cannot buy full properties. Fractional ownership models may also increase market participation. At the same time, keeping the pilot controlled allows regulators to study risks before scaling further.
What Comes Next
For now, Phase Two remains a structured pilot rather than a full open market. However, the launch signals growing confidence in blockchain-based property infrastructure. If the secondary market performs smoothly, Dubai could expand the program significantly. The move reinforces a wider global trend toward real-world asset tokenization. Still, long-term success will depend on liquidity, user adoption and regulatory consistency. For now, Dubai has clearly positioned itself near the front of the race.