DUBAI (Reuters) – MANTRA, a blockchain platform focused on real-world assets (RWAs), has signed an agreement with Dubai developer DAMAC Group to tokenize assets in the Middle East worth at least $1 billion, the two companies said Thursday.
Asset tokenization allows rights or ownership of assets, including RWAs, to be converted into digital tokens on a blockchain, which can then be managed and traded online.
DAMAC, one of Dubai’s largest developers, whose assets include real estate and data centers, has invested in data centers around the world.
On Tuesday, Chairman Hussain Sajwani and newly-elected US President Donald Trump announced that it would invest $20 billion in data centers in the US over the coming years.
“DAMAC is always exploring new technologies to enhance our product offering. Partnering with MANTRA is a natural extension of our commitment to innovation and forward-thinking solutions,” Amira Sajwani, the developer’s Managing Director Sales & Development, said in a statement.
The Middle East assets will be available through the MANTRA chain early this year, the two companies said.
Last year, MANTRA agreed with developer MAG Property Development to tokenize real estate assets worth a total of $500 million, starting with a residential project in Dubai, the Gulf’s tourism and business hub.
The United Arab Emirates and the city want to become a global center for digital assets, including the crypto industry, and are working to attract some of the largest companies in the sector and develop regulation of virtual assets.
In 2017, the Dubai Land Department launched its blockchain platform using a database to record real estate contracts, including leases and registrations, and link them to utility and telecom accounts.
(Reporting by Federico Maccioni, Editing by Barbara Lewis)