Mantra, a blockchain built for tokenized real-world assets (RWAs), signed a $1 billion agreement with Damac Group, an investment conglomerate, to enable token-based finance in the Middle East.
Damac, whose portfolio spans sectors such as real estate development, data centers and hospitality, will use Mantra to tokenize its extensive asset portfolio.
According to a news release, the partnership aims to bring blockchain-powered transparency, security and access to Damac’s assets, which will be exclusively available on the Mantra chain early this year.
John Mullin, co-founder and CEO of Mantra, told Cointelegraph that the endorsement from Damac “is a massive vote of confidence for the future of RWA tokenization.”
Tokenization in the Middle East
The partnership will allow Damac to leverage Mantra’s RWA-focused blockchain to tokenize its diverse portfolio, which includes real estate, hotels, resorts, manufacturing, capital markets and fashion.
Based in the United Arab Emirates, the multibillion-dollar investment conglomerate’s partnership with Mantra will further the blockchain’s goal to become “the preferred ledger of record” for RWAs.
“The UAE has shown time and again that they can lead the crypto industry in innovation, and to be delivering this vision alongside them is a monumental moment for us,” Mullin said.
“Everything will be tokenized”
In April 2024, Mullin told Cointelegraph in an episode of the Hashing It Out podcast that tokenization would be a key trend due to the interest from institutions and projects seeking ways around regulatory hurdles.
The Mantra CEO said that he believes that eventually, “everything will be tokenized,” particularly RWA tokenization because it allows institutions to invest onchain without interacting with more volatile assets.
He explained his nuanced approach that anyone could tokenize pretty much anything, but to create a truly transferable token, projects have to merge the tech and token creation with real-world ownership, corporate actions and legal status.
RWAs use cases to watch for in 2025
Sergey Gorbunov, CEO of Interop Labs and co-founder of Axelar Network, predicted that the value of tokenized assets “will double in the year” 2025.
Gorbunov’s view is reflected in an annual report by venture capital firm a16z, which reported trends in the crypto and blockchain industry and said “tokenizing unconventional assets could redefine income generation in the digital age.”
By unlocking liquidity for traditionally nonliquid assets, tokenized RWAs can allow anyone, regardless of geographical location, access to investments previously inaccessible to smaller investors.
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