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Mantra Chain and MAG Group to Tokenize $500 Million in Assets for Dubai Real Estate Projects

Mantra Chain and MAG Group collaborate to tokenize $500 million in assets for innovative real estate projects in Dubai, creating new investment opportunities.

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Mantra Chain to Tokenize $500 Million Worth of Assets for Dubai’s MAG Group

Mantra Chain and Dubai-based real estate developer MAG Group have announced a partnership to tokenize $500 million worth of assets, as revealed in a press release shared with CoinDesk.

Mantra Chain, with a focus on the Middle East region, plans to tokenize the assets in multiple tranches. The initial tranche will consist of the residential project Keturah Reserve, located in Meydan, Dubai, being developed by MAG Group. Additionally, the tranche will encompass a $75 million mega-mansion situated at ‘The Ritz-Carlton Residences, Dubai, Creekside’ development.

Investors will have the opportunity to earn yield through stablecoins and Mantra’s OM token. Expected yields include 8% from stablecoins, along with the allocation of additional OM tokens.

“The specifics of the yield, including the stablecoin to be utilized and the amount of OM tokens to be allocated, are currently being discussed between MAG Group and Mantra,” the companies stated, noting that final discussions will commence in the upcoming weeks.

As of the latest data, the OM token was trading at 84 cents, having reached an all-time high of over a dollar in June, according to CoinMarketCap.

The tokenization of real-world assets (RWA) by crypto companies has been gaining traction as a new application for crypto and blockchain technologies. While this trend has received support from some traditional industries, widespread adoption is anticipated to take time. A recent report by McKinsey projected that the market for tokenized assets could reach $4 trillion by 2030 in an optimistic scenario, cautioning that mass adoption of RWA is still distant.

Earlier in the year, Mantra successfully raised $11 million for real-world tokenization initiatives. The company was also in the final stages of obtaining licenses from Dubai’s crypto regulator VARA, as disclosed by founder John Patrick Mullin in an interview with CoinDesk back in March.

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