The deal will allow token-based financing of DAMAC’s wide range of portfolio companies that includes real estate development, hospitality and data centers.
Key Highlights:
- MANTRA is set to tokenize over $1 billion worth of DAMAC Group assets by early 2025.
- DAMAC’s diverse portfolio spans real estate, hospitality, and data centers, with the firm embracing cryptocurrency payments since 2022.
- President-elect Donald Trump recently disclosed DAMAC’s ambitious $20 billion investment in U.S. data centers.
In an exciting development, MANTRA, a leading layer-1 blockchain focused on tokenized real-world assets (RWA), has partnered with the UAE-based property giant DAMAC Group to digitize at least $1 billion worth of its assets, according to a press release issued Thursday. This move marks a significant step toward integrating blockchain technology with traditional investment avenues.
The collaboration will enable investors to fund DAMAC’s wide-ranging portfolio, including real estate developments, hospitality ventures, and data centers. By leveraging tokenization, the companies aim to simplify conventional investment methods and improve accessibility for both retail and institutional investors alike.
A representative from MANTRA told CoinDesk that further details regarding which DAMAC properties will be tokenized and the specifics of these offerings will be revealed soon. These offerings are expected to launch in early 2025, as noted in the official announcement.
Understanding Tokenization and Its Impact
Tokenization is the process of converting tangible assets like real estate, commodities, and securities into digital tokens, representing ownership on a blockchain. This approach is rapidly gaining popularity among institutions and governments worldwide, as it provides advantages such as faster settlements and broader access for investors. Industry projections from McKinsey, BCG, 21Shares, and Bernstein suggest that the tokenization of real-world assets could expand to trillions of dollars over the next decade.
“Tokenizing our assets offers a secure, transparent, and convenient way for investors to explore a diverse range of opportunities,” stated Amira Sajwani, managing director of DAMAC Group.
MANTRA’s Growing Presence in the Middle East
MANTRA is strategically focused on the Middle East as a hub for tokenizing traditional financial assets. Earlier this year, the blockchain network announced plans to tokenize $500 million worth of real estate assets from Dubai-based developer MAG Group. Following its mainnet launch in October, MANTRA’s native token, OM, experienced a 200% surge in market capitalization, reaching $3.6 billion, according to CoinGecko.
DAMAC, well-known for its innovative approach, has been exploring blockchain technology and cryptocurrency integration for years. In 2022, the firm began accepting bitcoin (BTC) and ether (ETH) for payments, aligning with the UAE’s goal to establish itself as a global cryptocurrency hub.
In a related development, President-elect Donald Trump revealed earlier this week that DAMAC is planning a $20 billion investment in data centers across multiple U.S. states, demonstrating the company’s commitment to expanding its technological footprint.
