- Leading UAE developer RAK Properties will now accept Bitcoin, Ethereum, and USDT for property payments
- The move is a partnership with fintech firm Hubpay and aligns with the UAE’s Vision 2030 for innovation
- This is part of a global trend, as major real estate firms in China are also moving into tokenization
The tokenization of real estate just got a massive boost in the United Arab Emirates. RAK Properties, a leading publicly-listed developer in Ras Al Khaimah, is now accepting Bitcoin (BTC), Ethereum (ETH), and Tether (USDT) for property purchases.
The move is a major signal of real-world crypto adoption and comes as the UAE sees broader integration of crypto payments for things like booking flights.
How Does the RAK Properties Crypto Payment System Work?
The new system is designed to give international investors a seamless way to buy property with crypto while insulating the developer from volatility.
Who is the fintech partner?
RAK Properties has partnered with the regulated fintech firm Hubpay. All crypto payments are processed through their platform, which instantly converts the digital assets into UAE dirhams. This means RAK Properties never directly holds the crypto, ensuring compliance and security.
Why is This a Major Signal for the UAE?
This initiative is a key part of Ras Al Khaimah’s strategy to position itself as a global hub for innovation and investment.
How does this fit with Ras Al Khaimah’s Vision 2030?
The move directly aligns with the emirate’s Vision 2030 strategy. By embracing crypto, RAK Properties, a $1.3 billion publicly traded company, is signaling that the region is open for business to a new, digitally-savvy class of global investors. This follows other major investment news in the region, including the launch of a $2 billion platform by Brevan Howard and Lunate in Abu Dhabi.
With a market capitalization of 4.7 billion dirhams ($1.3 billion) on the Abu Dhabi Securities Exchange, RAK Properties has established itself as a key player in the UAE’s property sector. Its partnership with Hubpay underscores the emirate’s ambition to appeal to a global investor base and strengthen its reputation as an innovative destination.
Global Trend Toward Real Estate Tokenization
The move by RAK Properties is not happening in a vacuum. It’s part of a growing global trend of major real estate firms leveraging blockchain technology.
What are major firms in China doing?
In a parallel move, Seazen Group, one of China’s largest real estate firms, recently announced plans to raise funds through tokenized real-world assets (RWAs).
The company is establishing a “Digital Assets Institute” in Hong Kong to issue tokenized bonds, some of which will be linked to its massive shopping center portfolio.
Led by Vice Chairman Wang Yifen, the Institute will focus on issuing tokenized financial instruments such as private and convertible bonds. Some of these RWAs will reportedly take the form of NFTs linked to Seazen’s Wuyue Plaza shopping centers.
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Source: https://coinedition.com/uae-real-estate-giant-rak-properties-accepts-crypto/
