MANTRA, a layer 1 blockchain designed for real-world tokenized assets (RWA), has entered into an agreement with UAE-based real estate conglomerate DAMAC Group to transfer at least $1 billion in assets from the venture on blockchain rails, the companies announced Thursday. a press release.
The agreement will allow investors to finance DAMAC’s portfolio companies spanning various sectors, including real estate development, hospitality and data centers. By tokenizing assets, the companies aim to streamline traditional investment processes while increasing accessibility for retail and institutional investors.
Details of which DAMAC properties will be tokenized and specifications of the offerings will be announced in the coming weeks, a MANTRA spokesperson told CoinDesk. Offers will be available from early 2025, the press release states.
Real-world asset tokenization, the process of converting traditional assets such as real estate, commodities, funds and securities into digital tokens that represent ownership on a blockchain, is gaining traction globally . Institutions and even governments are increasingly exploring tokenization in search of operational efficiencies such as faster settlements and broader accessibility for investors. The RWA market could reach billions of dollars this decade, according to various reports from McKinsey, BCG, 21Shares and Bernstein.
“Tokenizing our assets will provide investors with a secure, transparent and convenient way to access a wide range of investment opportunities,” Amira Sajwani, chief executive of DAMAC, said in a statement.
MANTRA focuses on the Middle East region to bring a diverse range of traditional financial assets to its blockchain. Earlier this year, it announced it would tokenize $500 million in assets from Dubai-based real estate developer MAG Group. The network’s mainnet launch took place in October and the market capitalization of its native OM token has increased by almost 200% over the past three months to $3.6 billion, according to data from CoinGecko.
DAMAC has a history of exploring ways to use blockchain technology and cryptocurrencies. In 2022, the company began accepting cryptocurrency payments in bitcoin (BTC) and ether (ETH), aligning with the UAE’s ambitions to become a cryptocurrency platform.
Notably, President-elect Donald Trump said earlier this week during a press conference that DAMAC was planning a $20 billion investment in data centers in several US states.
