DLD Activates Property Tokenization Phase 2 — The Pilot Sold Out in 1 Minute 58 Seconds
Secondary market trading for 7.8 million real estate tokens went live today, February 20, 2026, as Dubai moves from pilot testing to regulated execution via PRYPCO Mint.
What Happened Today
Dubai Land Department (DLD) activated Phase 2 of its Real Estate Tokenization Project this morning at 9 AM. For the first time, investors holding fractional property stakes can buy, sell, and transfer them on a live secondary market — through the PRYPCO Mint App, 24 hours a day, 7 days a week.
Trading opened today under a regulated framework built jointly with the Virtual Assets Regulatory Authority (VARA), the Dubai Future Foundation, and the Central Bank of the UAE. Tokens are linked directly to DLD-registered title deeds and denominated in UAE dirhams — not cryptocurrency. Sellers can list within a ±15% range of the current property valuation as displayed in the app.
The Pilot Numbers That Led Here
DLD's decision to activate secondary trading follows nine months of pilot data that ran from March 2025 through February 2026.
The 1 minute 58 second sell-out was a 1-bedroom apartment in Kensington Waters valued at AED 1.5 million — it attracted 149 investors from 35 nationalities, with over 10,700 others waitlisted. Before that, PRYPCO Mint's inaugural listing — a 2-bedroom apartment in Business Bay's Damac Prive Tower, priced at AED 2.4 million — drew 224 investors from 44 nationalities and sold out within 24 hours.
From Pilot to Secondary Market
Institutional Signal: Stake Raises $31M
Three days before today's launch, on February 17, Dubai-based fractional real estate platform Stake closed a $31 million Series B led by Emirates NBD. Mubadala Investment Company, Property Finder, and Ellington Properties also participated. Stake has received in-principle VARA approval and is advancing regulated tokenization. Total funding now stands at $58 million.
Emirates NBD and Mubadala backing tokenized real estate in the same week Phase 2 launches is not a coincidence. Institutional capital is following the regulatory infrastructure DLD has been building since March 2025.
Who Can Participate Now
Phase 2 is currently available to UAE residents aged 18 and above with a valid Emirates ID. Minimum entry starts from AED 2,000. The PRYPCO Mint App is the only platform currently authorized for trading. International investor access has been flagged as a future phase, with no confirmed timeline.
The project targets tokenized assets representing 7% of Dubai's total real estate market by 2033 — approximately USD 16 billion — in line with the Dubai Real Estate Sector Strategy 2033 and UAE Vision 2071.
What Comes Next
DLD will monitor pricing behavior, transaction volumes, and investor protection outcomes from this phase before determining next steps — including potential international access and onboarding of additional platforms beyond PRYPCO Mint and Ctrl Alt. Today's launch is a proving ground. How the market behaves in the coming weeks will shape the pace and scope of Dubai's tokenized property sector for years ahead.
Frequently Asked Questions
How tokenization works, who can invest, and what Phase 2 changes in practice.
How It Works
What is real estate tokenization and how is it different from a REIT?
Tokenization converts ownership rights in a specific physical property into digital tokens recorded on a blockchain. Each token represents a direct fractional stake in that one property — not a share in a fund. A REIT, by contrast, is a fund that pools capital across many buildings; you own shares of the fund, not of any individual property. With DLD-linked tokenization, your tokens correspond to a registered title deed for a named property, giving you a traceable, transparent ownership record that REITs do not offer.
What blockchain does PRYPCO Mint use?
PRYPCO Mint uses the XRP Ledger as its underlying blockchain, with tokenization handled by Ctrl Alt. The tokens fall under VARA's ARVA (Asset-Referenced Virtual Assets) classification — a regulatory framework introduced in May 2025 that legally defines tokens backed by real-world assets such as real estate. Every on-chain transaction is synchronized with DLD title deed records. Blockchain settlement is immediate; land registry updates follow the legal process to prioritize certainty over speed.
Do property token holders receive rental income?
Yes, proportionally. Rental income generated by a tokenized property is distributed to token holders in proportion to their stake. Smart contracts automate this distribution, removing the need for manual calculation or intermediaries. The exact yield depends on the property's rental performance and any platform fees. Details for each listed property are disclosed in the PRYPCO Mint App before investment.
Is tokenized real estate in Dubai regulated?
Yes. The project operates under Dubai Land Department oversight and VARA licensing, developed in collaboration with the Dubai Future Foundation and the Central Bank of the UAE. In May 2025, VARA updated its rulebook to formally regulate tokenized real-world assets under the new Asset-Referenced Virtual Assets (ARVA) classification. Tokens are denominated in UAE dirhams — not cryptocurrency — and all platforms must pass KYC and AML checks before investors can participate.
Phase 2 Specifics
How do I buy or sell tokenized property in Dubai?
To buy: download the PRYPCO Mint App, complete KYC with your Emirates ID, browse listed properties, and invest from AED 2,000. Trading is available 24/7. To sell from Phase 2 onwards: list your tokens on the in-app marketplace within ±15% of the current property valuation shown in the app. Once a buyer matches your listing, the transfer is settled on-chain and reflected in DLD records.
Is there a limit on how much of one property I can own through tokens?
Yes. A single investor cannot hold more than 20% of the tokens for any one property. This cap is enforced at the platform level to prevent concentration of ownership and to keep the fractional model accessible to a broad investor base.
Can international investors buy tokenized property in Dubai?
Not yet. Phase 2 is currently restricted to UAE residents aged 18 and above with a valid Emirates ID. DLD has indicated that international investor access is planned for a future phase — a logical step given that Phase 1 attracted buyers from 50+ nationalities despite the restriction — but no confirmed timeline has been announced.
What is Dubai's target for the tokenized real estate market by 2033?
DLD's target is for tokenized assets to represent 7% of Dubai's total real estate market by 2033 — approximately USD 16 billion. This goal is embedded in the Dubai Real Estate Sector Strategy 2033 and sits within the broader UAE Vision 2071 digital economy framework. Phase 2's secondary market is a necessary infrastructure step toward that scale: liquidity is what makes fractional ownership a viable long-term asset class rather than a one-time pilot.
What happens to my tokens if PRYPCO Mint closes down?
Because tokens are linked directly to DLD-registered title deeds and recorded on the XRP Ledger, ownership is not held by PRYPCO Mint — the platform is the marketplace, not the custodian of your stake. DLD's involvement as the registration authority provides an institutional backstop that a purely private platform could not. That said, Phase 2 is still operating within a controlled pilot framework, and DLD has indicated it is continuing to develop investor protection mechanisms as the programme scales. Investors should review the full risk disclosure in the PRYPCO Mint App before investing.