Mantra Chain has announced a partnership with Dubai-based real estate developer MAG Group to tokenize $500 million worth of assets. The collaboration aims to leverage blockchain technology to provide investors with opportunities to invest in real estate projects in the Middle East.
The tokenization process will involve dividing the assets into multiple tranches, starting with a residential project called Keturah Reserve located in Meydan, Dubai. Additionally, a $75 million mega-mansion at ‘The Ritz-Carlton Residences, Dubai, Creekside’ development will be included in the initial tranche.
Investors participating in the tokenization will have the opportunity to earn yields through stablecoins and Mantra’s native token, OM. The expected yield for investors is 8% from stablecoins, with the possibility of receiving additional OM tokens as part of their investment.
While specific details regarding the choice of stablecoin and the allocation of OM tokens are still being discussed between MAG Group and Mantra Chain, the companies plan to finalize these details in the coming weeks.
Mantra’s OM token, which is currently trading at 84 cents, reached an all-time high of over a dollar in June, according to CoinMarketCap. The token’s performance reflects growing interest in real-world asset tokenization within the crypto industry.
Tokenization of real-world assets (RWA) has gained traction as a promising use case for blockchain technology. Industry experts predict that the market for tokenized assets could reach $4 trillion by 2030, although widespread adoption may take time to materialize.
In a previous fundraising round, Mantra raised $11 million to support its real-world asset tokenization efforts. The company is also in the final stages of obtaining regulatory approvals from Dubai’s crypto regulator VARA, signaling its commitment to compliance and transparency in the tokenization process.