MANTRA, a layer-1 blockchain designed for tokenized real-world property (RWA), entered an settlement with United Arab Emirates-based property conglomerate DAMAC Group to convey at the least $1 billion of the agency’s property to blockchain rails, the businesses introduced Thursday in a press launch.
The deal will enable traders to finance DAMAC’s portfolio firms spanning throughout varied sectors together with actual property growth, hospitality and knowledge facilities. By tokenizing property, the businesses purpose to streamline conventional funding processes whereas rising accessibility for each retail and institutional traders.
Particulars of which DAMAC properties shall be tokenized and specs of the choices shall be introduced within the coming weeks, a MANTRA spokesperson advised CoinDesk. The choices shall be out there beginning in early 2025, the press launch stated.
Tokenization of real-world property, the method of changing conventional property 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 beneficial properties like speedier settlements and broader investor accessibility. The RWA market might develop to trillions of {dollars} by this decade, varied experiences from McKinsey, BCG, 21Shares and Bernstein projected.
“Tokenizing our property will present traders 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 convey a various vary of conventional monetary property to its blockchain. Earlier this 12 months, the it stated it should tokenize $500 million price of property 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 exhibits.
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 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.