Mantra Chain, a blockchain enterprise, is set to tokenize $500 million worth of assets for Dubai-based real estate giant MAG Group, according to a press release shared with CoinDesk. This ambitious endeavor, focused on the Middle Eastern market, will tokenize the assets in multiple phases, beginning with a prestigious residential project, Keturah Reserve, currently under construction by MAG in Meydan, Dubai. Additionally, the first tranche will include a $75 million mega-mansion at ‘The Ritz-Carlton Residences, Dubai, Creekside’ development.

Investors partaking in this venture will earn yields via stablecoins and Mantra’s OM token, with expected returns of 8% from the stablecoins alongside additional OM tokens. The specifics regarding which stablecoin will be utilized and the exact allocation of OM tokens are still under discussion between MAG and Mantra, with final deliberations slated for the coming weeks.

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As of now, OM is trading at 84 cents, having previously reached an all-time high of over a dollar in June, according to CoinMarketCap.

The initiative by Mantra and MAG is part of a broader push by crypto firms to tokenize real-world assets (RWA), highlighting a significant use case for blockchain technology. Despite growing interest from traditional industries, the widespread adoption of tokenized assets remains a gradual process. A recent report by McKinsey suggests that the market for tokenized assets could potentially reach $4 trillion by 2030, though it also cautions that mass adoption is still a distant reality.

In March, Mantra successfully raised $11 million specifically for real-world tokenization projects. The firm is currently in the final stages of obtaining licensure from Dubai’s crypto regulator VARA, as confirmed by Mantra’s founder, John Patrick Mullin, in an interview with CoinDesk.

This strategic move by Mantra and MAG Group underscores the transformative potential of blockchain in real estate, offering investors novel avenues for yield generation and asset management in the burgeoning digital economy.