$500 million worth of assets are going to be tokenized in Dubai, after Mantra Chain and MAG Group announced a partnership, on 3 July 2024. The collaboration aims to leverage blockchain technology to bring liquidity and new investment opportunities to Dubai’s real estate market, according to a press release.
Mantra Chain, known for enabling the fractionalization and tokenization of real-world assets, is set to collaborate with the popular Dubai-based real estate developer, MAG Group.
Investors participating in the tokenization initiative will have the opportunity to earn yield through stablecoins and Mantra’s OM token.
Investors Could Earn Yield In Stablecoins
The expected yield from stablecoins is 8%, while investors are also set to receive additional OM tokens.
The specific stablecoin to be used, and the allocation of OM tokens, are subjects of ongoing discussions between MAG Group and Mantra. The company’s final decision is expected in the coming weeks.
Mantra’s OM token, which reached an all-time high of over a dollar in June 2024, is currently trading at 84 cents, according to CoinMarketCap data. The OM token will play a crucial role in facilitating the investment process, in terms of providing additional benefits to token holders.
The tokenization process, developed by MAG Group, will occur in multiple tranches. The first tranche will feature a residential project known as Keturah Reserve. Furthermore, the initial tranche will include a $75 million mega-mansion within the Ritz-Carlton Residences, Dubai, Creekside’ development.
🔥 UAE Real Estate Giant #MAG Partners with #MANTRA to Tokenize $500 Million in Real Estate Assets
✅ MANTRA and MAG will collaborate to democratize access to luxury UAE real estate using secure, yield-bearing vault products backed by MANTRA’s L1 technology.
This collaboration… pic.twitter.com/eVrwOUUa9H
— MANTRA – Tokenizing RWAs (@MANTRA_Chain) July 3, 2024
Commenting on the development, John Patrick Mullin, CEO and Founder of Mantra said, “Partnering with MAG represents a major milestone in our mission to bridge blockchain with tangible assets, with a special focus on the Middle East.”
“This venture will set new standards in real estate tokenization, offering global investors access to premium real estate assets in the UAE,” Mullin added.
Earlier this year, Mantra raised $11 million to support its real-world tokenization efforts. The company is in the final stages of obtaining licenses from Dubai’s crypto regulator.
RWA Tokenization Finds Momentum
Tokenization of real-world assets (RWA) has gained traction in the crypto industry as a means of expanding the use cases for blockchain technology.
In fact, McKinsey estimated that the market for tokenized assets could reach $4 trillion by 2030, in an optimistic scenario. However, the company cautioned that mass adoption of RWA is still a considerable distance away.
The increasing interest from institutional investors and financial markets is proving to be a significant driving force behind the growth of asset tokenization.
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Investment management firm BlackRock, launched a tokenized fund in collaboration with Securitize, a digital asset securities firm.
WisdomTree is also exploring the provision of different on-chain services through a unified interface for its clients. The company aims to integrate various financial services, including tokenized portfolios and traditional banking services, into a single application.
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
