Mantra Chain will tokenize $500 million worth of assets for Dubai-based real estate developer MAG Group. The firms announced this in a press release shared with CoinDesk.
Mantra, focusing on the Middle East, plans to tokenize the assets in multiple stages. The first stage includes a residential project, Keturah Reserve, currently under construction by MAG in Meydan, Dubai. Additionally, this stage will feature a $75 million mega-mansion at ‘The Ritz-Carlton Residences, Dubai, Creekside’ development, part of the Keturah Resort.
Investors will earn yields through stable coins and Mantra’s OM token. Expected returns are 8% from stable coins, with additional OM tokens to be granted. Specifics of the yield, such as the stable coin to be used and the amount of OM allocated, are still under discussion between MAG and Mantra, with final talks set to begin in the coming weeks.
As of the writing, OM is trading at 84 cents, having reached an all-time high of over a dollar in June, according to CoinMarketCap.
The trend of tokenizing real-world assets (RWA) is gaining traction in the crypto industry, though broad adoption is expected to take time. McKinsey recently projected that the market for tokenized assets could reach $4 trillion by 2030 in an optimistic scenario but noted that widespread adoption remains distant.
In March, Mantra raised $11 million for real-world tokenization. The firm is in the final stages of securing licenses from Dubai’s crypto regulator VARA, according to founder John Patrick Mullin.
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By Proptechbuzz
By Ravi Kumar
