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 carry no less than $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 corporations spanning throughout varied sectors together with actual property growth, hospitality and knowledge facilities. By tokenizing belongings, the businesses purpose to streamline conventional funding processes whereas growing accessibility for each retail and institutional buyers.
Particulars of which DAMAC properties will probably be tokenized and specs of the choices will probably be introduced within the coming weeks, a MANTRA spokesperson instructed CoinDesk. The choices will probably be obtainable beginning in early 2025, the press launch stated.
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 factors like speedier settlements and broader investor accessibility. The RWA market may develop to trillions of {dollars} by means of this decade, varied experiences 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, stated in an announcement.
MANTRA focuses on the Center East area to carry a various vary of conventional monetary belongings to its blockchain. Earlier this yr, the it stated it’ll tokenize $500 million price of belongings of Dubai-based actual property developer MAG Group. The community’s mainnet launch befell in October, and its native token OM’s market capitalization rose by practically 200% over the previous three months to $3.6 billion, CoinGecko knowledge 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 grow to be a crypto hub.
Notably, President-elect Donald Trump stated earlier this week throughout a press convention that DAMAC laid out plans for a $20 billion funding in knowledge facilities throughout a number of U.S. states.
