Mantra to Convert $500M of MAG Group’s Real Estate into Digital Tokens
Mantra will convert the real estate holdings into digital tokens in multiple phases, offering returns through stablecoins and OM tokens.
Mantra Chain is set to digitalize $500 million in real estate assets for Dubai’s MAG Group, according to a press release the companies shared with CoinDesk. Mantra, with a focus on the Middle East, plans to tokenize these assets in several phases. The initial phase will feature a residential project named Keturah Reserve, under construction by MAG in Meydan, Dubai, and a $75 million luxury mansion located at ‘The Ritz-Carlton Residences, Dubai, Creekside’ within the Keturah Resort.
Investors in these tokenized assets can expect to earn returns through stablecoins and Mantra’s own OM token, with anticipated stablecoin yields at 8% and additional OM tokens as a bonus. Details regarding the specific stablecoin to be used and the exact amount of OM tokens to be distributed are still being finalized between MAG and Mantra, with final discussions expected to occur in the upcoming weeks.
As of this report, OM’s trading value stood at 84 cents, having previously reached a peak of over a dollar in June, as per CoinMarketCap data.
The move towards tokenizing real-world assets (RWA) is gaining traction among crypto companies, aiming to broaden the use of cryptocurrency and blockchain technology. Despite the enthusiasm from certain sectors, widespread acceptance may be slow. A report from McKinsey suggested that the market for tokenized assets could potentially hit $4 trillion by 2030 under an optimistic scenario but cautioned that mass adoption of RWA is not imminent.
In March, Mantra secured $11 million in funding aimed at tokenizing real-world assets and was nearing the completion of obtaining necessary licenses from Dubai’s cryptocurrency regulator VARA, Mantra’s founder John Patrick Mullin informed CoinDesk in March.
The article was edited by Sheldon Reback.
Responses