MANTRA and DAMAC Partner on $1 Billion Real-World Asset Tokenization

MANTRA has inked a significant partnership with UAE-based DAMAC Group. The collaboration aims to bring $1 billion of DAMAC's assets onto blockchain rails. This move could revolutionize how investors access real estate, hospitality, and data center portfolios. The agreement, announced Thursday, shows how investment processes can be simplified by enhancing accessibility for both retail and institutional investors by tokenizing real-world assets (RWA).

The specifics of which DAMAC properties will be tokenized are yet to be disclosed. An announcement is expected in the coming weeks, according to a MANTRA spokesperson. Tokenization offerings will commence early in 2025, as indicated in their press release.

The concept of converting traditional assets into blockchain tokens is gaining momentum worldwide. Institutions and governments are increasingly exploring it for operational efficiency and improved investor reach. It is anticipated that the RWA market could expand to several trillion dollars over the next decade, according to predictions by McKinsey, BCG, 21Shares, and Bernstein.

"Tokenizing our assets will provide investors with a secure, transparent, and convenient way to access a wide range of investment opportunities," stated Amira Sajwani, Managing Director of DAMAC. MANTRA is concentrating on the Middle East to diversify financial assets on its blockchain.

Earlier, it revealed plans to tokenize $500 million of Dubai-based MAG Group's assets. MANTRA's mainnet launched in October, and its token OM has seen a 200% rise in market capitalization, hitting $3.6 billion recently, as per CoinGecko.

DAMAC has been exploring blockchain and cryptocurrency avenues for some time. The firm began accepting bitcoin ( BTC ) and ether ( ETH ) payments in 2022, aligning with UAE's crypto aspirations.

Adding to the momentum, President-elect Donald Trump recently mentioned DAMAC's ambitious $20 billion data center investment across various U.S. states during a press conference.