The Latest Progress of the Physical Asset Tokenization Project MANTRA and Its Impact on the RWA Industry

Recently, a blockchain project focused on the tokenization of real-world assets (RWA) announced that it has reached an agreement with a large real estate group in the Middle East, planning to tokenize at least $1 billion in assets from the group in the UAE. This news has attracted widespread attention in the industry and highlights the enormous potential of the RWA sector.

In the past year, the project has been very active in the RWA field. Its mainnet will officially launch in October 2024, followed by a significant increase in the token price. Data shows that throughout 2024, the token increased by as much as 6418.3%, rising from $0.0584 at the beginning of the year to $3.81 at the end of the year, making it one of the most outstanding RWA investment projects of 2024.

The Middle East becomes a business focus, large-scale asset tokenization is about to launch

The real estate group involved in this cooperation is a highly influential enterprise in the Middle East, with businesses covering various fields such as real estate, capital markets, hotel resorts, manufacturing, catering, high-end fashion, and data centers. The group has several well-known projects worldwide, including a 50-story high-rise development project in London and a luxury resort in the Maldives.

The newly reached agreement aims to provide token-based financing solutions for the portfolio companies of the real estate group, covering multiple sectors including real estate, hospitality, and data centers. This collaboration is expected to enhance the accessibility of investments and simplify related processes, with the tokenization of the first batch of assets planned to start in early 2025.

Currently, the blockchain project has business operations in several regions of Asia, but its main operational focus is gradually shifting to the Middle East, especially Dubai. Last year, the project also reached an agreement with another developer to tokenize real estate assets valued at a total of $500 million, with the first project starting from a residential project in Dubai.

In addition, the project has signed a memorandum of understanding with a digital bank in the UAE authorized by the central bank, and both parties will collaborate to develop a framework that supports RWA tokenization and distribution, while complying with relevant regulations of local regulatory authorities.

2024 Report Card: Financing Completed, Mainnet Launched

Looking back at 2024, the project's development has been fruitful. In March, the project completed a $11 million financing; two months later, it received a strategic investment from a well-known securities company's digital asset subsidiary.

At the technical level, the project has developed a complete suite of RWA tools, including digital identity, compliance systems, token management systems, decentralized exchanges, and liquidity-efficient emission protocols, among other modules. These modules work together to ensure that RWA tokenized assets can be effectively managed and liquidated within a compliance framework.

Among them, the tokenization service (MTS) module allows for the creation, management, and control of tokenized assets on the project chain, with functions covering token factory, configurable workflows, administrator permissions, comprehensive token management, and bank module integration, etc.

Decentralized exchanges (DEX) have introduced a protocol layer liquidity pool system, providing core support for the platform's decentralized finance (DeFi) and creating a permissionless environment that offers blockchain-integrated liquidity.

The Liquidity Efficient Emission Protocol (LEEP) is currently under development, aimed at addressing the widespread liquidity shortage in the crypto market, particularly for assets beyond Bitcoin and Ethereum. The goal of LEEP is to provide liquidity solutions for tokenized physical assets.

On October 23, 2024, the project's mainnet will be officially launched. Users can engage in several important activities, including bridging tokens from ERC-20 to the mainnet, staking tokens to secure the network and earn rewards, and participating in the RWA ledger, among others.

Future Outlook: Phased Advancement of RWA Development

The CEO of the project stated that their goal is to become a ledger for asset issuance or RWA. He believes that achieving large-scale adoption of RWA requires a public blockchain that can be compatible with a broader DeFi ecosystem. At the same time, they are building a permissionless layer that allows asset issuers, tokenization platforms, and regulated trading venues to issue, distribute, and manage RWA in a compliant manner.

The project is expanding its DApp ecosystem, including a secondary market, a soon-to-be-licensed on-chain RWA liquidity hub, and collaborations with various DeFi providers in lending, borrowing, and fractional real estate products. Additionally, they are exploring areas such as private credit, payments, and carbon credits.

Looking ahead, the project has developed a three-phase development plan: the first phase focuses on the supply side, bringing high-quality assets onto the chain; the second phase will focus on liquidity and secondary market venues; the final phase will unlock the composability of RWA, allowing it to be used in different DeFi applications.

The CEO of the project stated that their goal is to reach a total locked value (TVL) of $100 billion in RWA by the end of 2026. He acknowledged that progress is currently slow but emphasized that they are attracting new funds, new capital, and new participants into the field. He believes that over time, this effort will create a snowball effect, ultimately propelling the project to a leading position in the RWA space.

Overall, the project's collaboration with Middle Eastern real estate giants marks a further application of blockchain technology in the tokenization of real estate in the Middle East, also providing new opportunities for the RWA sector. As the project continues to expand in the RWA field, its future development is worth the industry's continued attention.