MANTRA, a layer-1 blockchain designed for tokenized real-world belongings (RWA), entered an settlement with United Arab Emirates-based property conglomerate DAMAC Group to deliver a minimum of $1 billion of the agency’s belongings to blockchain rails, the businesses introduced Thursday in a press launch.
The deal will enable buyers to finance DAMAC’s portfolio firms spanning throughout varied sectors together with actual property improvement, hospitality and information facilities. By tokenizing belongings, the businesses purpose to streamline conventional funding processes whereas rising accessibility for each retail and institutional buyers.
Particulars of which DAMAC properties might be tokenized and specs of the choices might be introduced within the coming weeks, a MANTRA spokesperson instructed CoinDesk. The choices might be accessible beginning in early 2025, the press launch mentioned.
Tokenization of real-world belongings, the method of changing conventional belongings like actual property, commodities, funds and securities into digital tokens that represents possession on a blockchain, is gaining traction globally. Establishments and even governments are more and more exploring tokenization in pursuit of operational effectivity positive aspects like speedier settlements and broader investor accessibility. The RWA market may develop to trillions of {dollars} by way of this decade, varied studies from McKinsey, BCG, 21Shares and Bernstein projected.
“Tokenizing our belongings will present buyers with a safe, clear and handy solution to entry a variety of funding alternatives,” Amira Sajwani, managing director of DAMAC, mentioned in a press release.
MANTRA focuses on the Center East area to deliver a various vary of conventional monetary belongings to its blockchain. Earlier this 12 months, the it mentioned it’ll tokenize $500 million price of belongings of Dubai-based actual property developer MAG Group. The community’s mainnet launch came about in October, and its native token OM’s market capitalization rose by almost 200% over the previous three months to $3.6 billion, CoinGecko information reveals.
DAMAC has a historical past of exploring methods to make use of blockchain tech and cryptocurrencies. In 2022, the agency started accepting cryptocurrency funds in bitcoin (BTC) and ether (ETH), aligning with the UAE’s ambitions to develop into a crypto hub.
Notably, President-elect Donald Trump mentioned earlier this week throughout a press convention that DAMAC laid out plans for a $20 billion funding in information facilities throughout a number of U.S. states.
