MANTRA, a layer-1 blockchain designed for tokenized real-world assets (RWA), blocks UAE-based real estate conglomerate DAMAC Group and at least $1 billion of its assets. The companies announced Thursday that they have signed an agreement to introduce the technology to chain rail. press release.
The transaction will enable investors to fund DAMAC's portfolio companies across a variety of sectors including real estate development, hospitality, and data centers. By tokenizing assets, the companies aim to streamline the traditional investment process and increase accessibility for both retail and institutional investors.
A MANTRA spokesperson told CoinDesk that details of which DAMAC properties will be tokenized and the specifications of that offering will be announced in the coming weeks. According to a press release, these products will be available starting in early 2025.
Real-world asset tokenization, the process of converting traditional assets such as real estate, goods, funds, and securities, into digital tokens representing ownership on a blockchain is gaining worldwide attention. . Institutions and even governments are increasingly considering tokenization in pursuit of operational efficiencies such as faster payments and broader investor access. Various reports from McKinsey, BCG, 21Shares, and Bernstein predict that the RWA market could grow to trillions of dollars over the course of this decade.
“By tokenizing our assets, we are providing a secure, transparent and convenient way for investors to access a wide range of investment opportunities,” DAMAC Managing Director Amira Sajwani said in a statement. .
MANTRA focuses on the Middle East region and brings various traditional financial assets to its blockchain. Earlier this year, the company announced it would tokenize $500 million worth of assets from Dubai-based real estate developer MAG Group. The network's mainnet launch took place in October, and the market cap of its native token OM has risen nearly 200% in the past three months to $3.6 billion, according to CoinGecko data.
DAMAC has a history of exploring the use of blockchain technology and cryptocurrencies. The company started accepting cryptocurrency payments in Bitcoin (BTC) and Ether (ETH) in 2022, in line with the UAE's ambitions to become a cryptocurrency hub.
Notably, President-elect Donald Trump said in a press conference earlier this week that DAMAC plans to invest $20 billion in data centers across multiple U.S. states.
