Mantra Chain is set to tokenize $500 million worth of assets belonging to the MAG Group, a real estate developer based in Dubai. The tokenization process will be carried out in multiple stages, with the initial stage involving a residential project called Keturah Reserve in Meydan, Dubai. Additionally, a $75 million mega-mansion at ‘The Ritz-Carlton Residences, Dubai, Creekside’ will also be included in the first tranche of assets to be tokenized.
Investors who participate in the tokenization process will have the opportunity to earn yields through stablecoins and Mantra’s OM token. The expected yield for investors is 8% from stablecoins, and they will also be given additional OM tokens. The specific details regarding the stablecoin to be used and the allocation of OM tokens are currently being discussed between MAG and Mantra. These discussions are expected to be finalized in the upcoming weeks.
As of the time of reporting, the OM token was trading at 84 cents, having reached an all-time high of over a dollar in June. This move by Mantra to tokenize real estate assets is part of a larger trend in the crypto industry, where there is a growing interest in tokenizing real-world assets. This trend has gained support from various sectors, although widespread adoption may still take some time to materialize.
McKinsey, a global consulting firm, has projected that the market for tokenized assets could reach $4 trillion by 2030 in an optimistic scenario. However, they have also cautioned that mass adoption of tokenized real-world assets is still a distant prospect. Mantra had previously raised $11 million for real-world tokenization in March and was in the final stages of obtaining licenses from Dubai’s crypto regulator VARA, according to founder John Patrick Mullin.
Overall, the move by Mantra to tokenize $500 million worth of real estate assets belonging to the MAG Group represents a significant step in the direction of integrating blockchain technology into traditional industries. This initiative not only provides investors with new opportunities to participate in real estate investments but also highlights the potential for blockchain and crypto to revolutionize the way assets are managed and traded in the future.