Dubai launches first licensed real estate tokenization project

On May 27, 2025, Dubai announced the launch of the first licensed real estate tokenization project in the Middle East and North Africa (MENA) region, demonstrating growing interest in real estate tokenization (RWA) in one of the world’s crypto hubs. This was reported in an official statement by the Dubai government.

Project details

The project is being implemented with the participation of the Dubai Land Department (DLD), the UAE Central Bank and the Dubai Future Foundation. Real estate tokens will be traded on the new Prypco Mint platform, with Zand Digital Bank appointed as the bank for the pilot phase of the project.

• Minimum investment: AED 2,000 ($545);
• Access: In the pilot phase, participation is limited to UAE ID holders, but global expansion is planned;
• Transaction currency: all transactions are carried out in dirhams (AED), without the use of cryptocurrencies.

On May 19, 2025, the Dubai Virtual Assets Regulatory Authority (VARA) updated its regulations to allow the tokenization of real assets and their trading on secondary markets. Earlier in April, DLD and VARA agreed to integrate the Dubai real estate registry with the tokenization process to attract global investors and increase market liquidity.

Context and significance for the crypto industry

The project allows individual investors to buy tokenized shares in ready-to-move-in properties in Dubai, making the market more accessible. This is part of the UAE’s strategy to position itself as a crypto hub. In May, Dubai also announced a partnership with Crypto.com to introduce crypto payments for government services.

Real estate tokenization solves key problems of the traditional market by increasing liquidity and opening up access for retail investors. According to Custom Market Insights, the real estate tokenization market could reach $19.4 billion by 2033 with annual growth of 21%, covering residential, commercial and industrial properties.

Prospects for the project

Despite the successes of companies like RealT and Metlabs, many projects face difficulties due to regulatory complexities. However, the support from DLD and VARA creates favorable conditions for the development of the market in Dubai.

Opinion and conclusions

In my opinion, the launch of such a project in Dubai is a landmark step that can become an example for other regions. Real estate tokenization opens up new opportunities for investors, but success will depend on how quickly the project can scale globally and cope with regulatory challenges.

News highlights:

• Dubai launched the first licensed real estate tokenization project in the MENA region.
• Investments start from 2,000 dirhams ($545), trading takes place on the Prypco Mint platform.
• The project is supported by DLD, the UAE Central Bank and VARA, with plans for global expansion.

Disclaimer: The information in this article is for informational purposes only and does not constitute legal or investment advice. CryptoInside is not responsible for any losses associated with the use of this information.