According to Cointelegraph, Mantra and Damac Group have signed a $1 billion partnership aimed at tokenizing real-world assets to enhance blockchain finance in the UAE.
As a blockchain focused on tokenizing real-world assets (RWAs), Mantra has signed this agreement with investment group Damac Group to promote token-based finance in the Middle East. Damac's portfolio spans multiple sectors, including real estate development, data centers, and hotels, and will utilize Mantra to tokenize its extensive asset portfolio.
According to a press release, this collaboration aims to bring blockchain-driven transparency, security, and accessibility to Damac's assets, which will be offered exclusively on the Mantra chain earlier this year.
John Mullin, co-founder and CEO of Mantra, told Cointelegraph that Damac's support "is a huge vote of confidence in the future of RWA tokenization."
Tokenization in the Middle East
This collaboration will enable Damac to leverage Mantra's focus on RWAs to tokenize its diverse portfolio, which includes real estate, hotels, resorts, manufacturing, capital markets, and fashion.
As a multi-billion investment group headquartered in the UAE, Damac's partnership with Mantra will further drive blockchain as the "preferred ledger" for RWAs.
Mullin stated: "The UAE has repeatedly proven that it can lead the crypto industry in innovation, and achieving this vision together with them is a significant moment for us."
"Everything will be tokenized"
In April 2024, Mullin told Cointelegraph in an episode of the Hashing It Out podcast that tokenization would become a major trend as institutions and projects seek ways to navigate regulatory obstacles.
The CEO of Mantra believes that ultimately "everything can be tokenized," especially RWA tokenization, as it allows institutions to invest on-chain without touching more volatile assets.
He explained that almost anyone can tokenize anything, but to create a truly transferable token, projects must integrate technology and token creation with real-world ownership, corporate actions, and legal status.
RWA use cases to watch in 2025
Sergey Gorbunov, CEO of Interop Labs and co-founder of Axelar Network, predicts that the value of tokenized assets "will double by 2025."
Gorbunov's views are reflected in the annual report of the venture capital firm a16z, which highlighted trends in the crypto and blockchain industry, stating that "tokenizing unconventional assets could redefine income generation in the digital age."
By unlocking liquidity for traditionally illiquid assets, tokenized RWAs can provide access to investment opportunities previously unreachable for small investors, regardless of geographical location.