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 convey 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 numerous sectors together with actual property improvement, hospitality and information facilities. By tokenizing belongings, the businesses goal to streamline conventional funding processes whereas growing accessibility for each retail and institutional buyers.
Particulars of which DAMAC properties can be tokenized and specs of the choices can be introduced within the coming weeks, a MANTRA spokesperson informed CoinDesk. The choices can 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 factors like speedier settlements and broader investor accessibility. The RWA market might develop to trillions of {dollars} by this decade, numerous reviews from McKinsey, BCG, 21Shares and Bernstein projected.
“Tokenizing our belongings will present buyers with a safe, clear and handy strategy to entry a variety of funding alternatives,” Amira Sajwani, managing director of DAMAC, mentioned in an announcement.
MANTRA focuses on the Center East area to convey a various vary of conventional monetary belongings to its blockchain. Earlier this 12 months, the it mentioned it is going to tokenize $500 million value of belongings of Dubai-based actual property developer MAG Group. The community’s mainnet launch occurred in October, and its native token OM’s market capitalization rose by practically 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 change 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.