MANTRA, a Layer 1 blockchain designed for tokenized real-world assets (RWA), has signed a deal with UAE-based real estate conglomerate DAMAC Group to bring at least $1 billion of assets company to the blockchain rails, the companies announced Thursday in a press release.
The deal will allow investors to fund DAMAC’s portfolio companies spanning various sectors, including real estate development, hospitality and data centers. By tokenizing assets, companies aim to streamline traditional investment processes while increasing accessibility for retail and institutional investors.
Details on which DAMAC properties will be tokenized and the specifications of the offerings will be announced in the coming weeks, a MANTRA spokesperson told CoinDesk. Offers will be available starting in early 2025, according to the press release.
Tokenization of real-world assets, 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 for improvements in operational efficiency, such as faster settlements and greater accessibility to investors. The RWA market could grow to trillions of dollars during this decade, multiple reports from McKinsey, BCG, 21Shares and Bernstein project.
“Tokenization of our assets will provide investors with a secure, transparent and convenient way to access a wide range of investment opportunities,” Amira Sajwani, CEO of DAMAC, said in a statement.
MANTRA focuses on the Middle East region to incorporate a wide range of traditional financial assets to its blockchain. Earlier this year, it said it will tokenize assets worth $500 million from Dubai-based real estate developer MAG Group. The network’s mainnet launch took place in October, and the market capitalization of its native token OM increased nearly 200% in the past three months to $3.6 billion, CoinGecko data shows.
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 hub.
Notably, President-elect Donald Trump said earlier this week during a press conference that DAMAC presented plans for a $20 billion investment in data centers in several US states.
