Mantra Plans Tokenization of $500M Real Estate Assets for the UAE Developer MAG Group
The United Arab Emirates (UAE) has dived into asset tokenization in different areas through blockchain technology.In a recent development, Mantra Chain is collaborating with MAG group, a prominent UAE real estate developer, to tokenize real estate assets.
The partnership will see Mantra tokenizing $500 million of MAG Group's real estate assets.
Mantra Collaborates with MAG Group to Facilitate Tokenization of Real-World AssetsAccording to Mantran Chain's July 3 announcement, the companies plan to tokenize $500 million of MAG's real estate portfolio in multiple tranches.
UAE Real Estate Giant #MAG Partners with #MANTRA to Tokenize $500 Million in Real Estate Assets
MANTRA and MAG will collaborate to democratize access to luxury UAE real estate using secure, yield-bearing vault products backed by MANTRA's L1 technology.
This collaboration... pic.twitter.com/eVrwOUUa9H
- MANTRA - Tokenizing RWAs (@MANTRA_Chain) July 3, 2024
Firstly, Mantra will tokenize Keturah Reserve, a MAG-developed luxury real estate in the Meydan district of Dubai. It will also include a $75 million mega-mansion in The Ritz-Carlton Residences, Dubai Creekside" of the Keturah Resort.
The entire project, valued at $500 million, remains the foundation for the concept and the partnership. It will offer investors access to an alternative asset class in RWAs through a secure vault product on blockchain technology.
Moreover, the CEO of MAG Lifestyle Development, Talal Moafaq Al Gaddah, expressed optimism in the venture. Gaddah said MAG leverages the innovation in Mantra's blockchain technology to improve the accessibility and value of real estate offerings.
Further, he noted how the partnership matches MAG's efforts to remain innovative and prominent in developing luxury real estate.
Mantra Chain is a permissionless blockchain that allows seamless tokenization and fractionalization of real-world assets. Its activities cover different areas, such as real estate, art, commodities, etc.
The company has reflected its commitment to blockchain tokenization, focusing on the Middle East. In March this year, it generated about $11 million to tokenize real-world assets (RWAs). Mantra's $OM token hit an all-time high of $1.09 as of June 10, 2024.
Significance of Mantra-MAG Partnership for Tokenized Real-World Assets (RWAs)The partnership between Mantra Chain and MAG Group is one of the groundbreaking moves with blockchain technology in Dubai. Moreover, it significantly shifts the relevance of real-world assets in the structure and accessibility of real estate.
Mantra CEO and Co-Founder John Patrick Mullin reacted to the partnership and its importance. He noted that the move will bridge blockchain technology with physical assets, especially in the Middle East.
Moreover, the collaboration aims to establish a fresh standard in real-world assets through real estate tokenization and provides investors with unique access to UAE real estate assets.
The Real-World Assets (RWAs) come with an attractive reward structure for investors who will participate in the vault product. They will have opportunities to earn yields via stablecoins and Mantra's OM token.
According to the project's indications, the estimated yield is up to 8% APY. Further, the press release revealed that both firms (MAG and Mantra) are discussing the specifics of the yield. These specifics include the particular stablecoin to be used and the amount of OM tokens to be allocated.
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