Mantra and Damac Group have formed a $1 billion partnership to tokenize real-world assets, advancing blockchain-based finance in the UAE.
Mantra, a blockchain designed for tokenized real-world assets (RWAs), has entered into a $1 billion agreement with Damac Group, an investment conglomerate, to facilitate token-based financing in the Middle East.
Damac will utilize Mantra to tokenize its extensive asset portfolio, which includes sectors such as real estate development, data centers, and hospitality.
The partnership, as stated in a news release, is designed to provide Damac’s assets with exclusive access to the Mantra chain in the early part of the year, as well as transparency and security powered by blockchain technology.
John Mullin, the co-founder and CEO of Mantra, stated to Cointelegraph that Damac’s endorsement is “a significant vote of confidence in the future of RWA tokenization.”
Middle East Tokenization
The partnership will enable Damac to tokenize its diverse portfolio, which encompasses real estate, hotels, resorts, manufacturing, capital markets, and apparel, by utilizing Mantra’s RWA-focused blockchain.
The multibillion-dollar investment conglomerate, which is headquartered in the United Arab Emirates, will contribute to the blockchain’s objective of becoming “the preferred ledger of record” for RWAs through its partnership with Mantra.
Mullin stated, “The UAE has consistently demonstrated its ability to lead the crypto industry in innovation, and to be able to execute this vision in conjunction with them is a momentous occasion for us.”
“Everything Will Be Tokenized”
In an episode of the Hashing It Out podcast that aired in April 2024, Mullin informed Cointelegraph that tokenization would be a significant trend as a result of the interest from institutions and projects that were attempting to circumvent regulatory obstacles.
The CEO of Mantra expressed his conviction that “everything will be tokenized,” with RWA tokenization being particularly noteworthy due to its capacity to enable institutions to invest on-chain without engaging with more volatile assets.
He elaborated on his nuanced approach, proposing that while it is possible for anyone to tokenize nearly anything, in order to establish a transferable token, projects must integrate technology and token creation with real-world ownership, corporate actions, and legal status.
Use Cases Of RWAs To Monitor In 2025
Sergey Gorbunov, CEO of Interop Labs and co-founder of Axelar Network, foresaw that the value of tokenized assets would “double” in 2025.
An annual report by venture capital firm a16z, which reported on trends in the crypto and blockchain industry, reflects Gorbunov’s perspective.
The report asserts that “tokenizing unconventional assets could redefine income generation in the digital age.”
Tokenized RWAs can provide access to investments that were previously unavailable to smaller investors by unleashing liquidity for traditionally nonliquid assets, irrespective of their geographical location.
