The deal will allow token-based financing of DAMAC’s wide range of portfolio companies that includes real estate development, hospitality and data centers.
Updated Jan 9, 2025, 2:04 p.m. UTCPublished Jan 9, 2025, 2:00 p.m. UTC
MANTRA, a layer-1 blockchain designed for tokenized real-world assets (RWA), entered an agreement with United Arab Emirates-based property conglomerate DAMAC Group to bring at least $1 billion of the firm’s assets to blockchain rails, the companies announced Thursday in a press release.
The deal will allow investors to finance DAMAC’s portfolio companies spanning across various sectors including real estate development, hospitality and data centers. By tokenizing assets, the companies aim to streamline traditional investment processes while increasing accessibility for both retail and institutional investors.
Details of which DAMAC properties will be tokenized and specifications of the offerings will be announced in the coming weeks, a MANTRA spokesperson told CoinDesk. The offerings will be available starting in early 2025, the press release said.
Tokenization of real-world assets, the process of converting traditional assets like real estate, commodities, funds and securities into digital tokens that represents ownership on a blockchain, is gaining traction globally. Institutions and even governments are increasingly exploring tokenization in pursuit of operational efficiency gains like speedier settlements and broader investor accessibility. The RWA market could grow to trillions of dollars through this decade, various reports from McKinsey, BCG, 21Shares and Bernstein projected.
“Tokenizing our assets will provide investors with a secure, transparent and convenient way to access a wide range of investment opportunities,” Amira Sajwani, managing director of DAMAC, said in a statement.
MANTRA focuses on the Middle East region to bring a diverse range of traditional financial assets to its blockchain. Earlier this year, the it said it will tokenize $500 million worth of assets of Dubai-based real estate developer MAG Group. The network’s mainnet launch took place in October, and its native token OM’s market capitalization rose by nearly 200% over the past three months to $3.6 billion, CoinGecko data shows.
DAMAC has a history of exploring ways to use blockchain tech and cryptocurrencies. In 2022, the firm began accepting cryptocurrency payments in bitcoin (BTC) and ether (ETH), aligning with the UAE’s ambitions to become a crypto hub.
Notably, President-elect Donald Trump said earlier this week during a press conference that DAMAC laid out plans for a $20 billion investment in data centers across several U.S. states.
Krisztian Sandor
Krisztian Sandor recently graduated from NYU’s business and economic reporter program as a Fulbright fellow and worked with Reuters and Forbes previously. Originally from Budapest, Hungary, he is now based in New York. He holds BTC and ETH.
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Krisztian Sandor