Mantra Joins Forces With MAG To Tokenize $500 Million Worth of Real Estate Assets
In Brief
Mantra has teamed up with MAG, a renowned real estate developer based in the UAE, to create a tokenized version of their impressive property portfolio.
Operating on a layer 1 blockchain, this platform focuses on tokenizing real-world assets (RWAs), Mantra (OM) recently announced a collaboration with a prominent UAE property developer, MAG . This partnership's primary goal is to enable the tokenization of MAG's extensive real estate holdings.
MAG is internationally esteemed for its luxury real estate developments, with its headquarters in the UAE. The firm prioritizes creating projects that elevate lifestyles and offer substantial advantages for both investors and clients.
With its real estate portfolio valued at over $5 billion, the alliance with Mantra aims to revolutionize real estate investments using blockchain innovations. Keturah Reserve, a high-end residential initiative situated in Meydan, Dubai, will be the first project in this partnership, designed to enhance living environments. Together, these companies will roll out a real estate financing vault on Mantra's blockchain, which is ready for compliance. This initial product aims to provide investors with the opportunity to earn yields from a new asset class, all while enjoying the security and transparency that blockchain offers.
The entire transaction value concerning the tokenization efforts will reach $500 million, divided into multiple stages. Investors contributing to the vault are likely to receive yields in stablecoins and OM tokens, with an anticipated annual percentage yield (APY) of about 8% on stablecoins alone. This yield will be further boosted by incorporating OM tokens.
The initial vault will also be backed by over-collateralization from a luxurious $75 million mansion located in ”The Ritz-Carlton Residences, Dubai, Creekside,” which is part of the Keturah Resort. This collateral is supported by MAG’s corporate credit, ensuring protections for investors while driving forward the innovative landscape of real estate investment through tokenization.
Mantra: What Is It?
As a permissionless blockchain platform capable of meeting and enforcing real-world regulatory standards, Mantra empowers developers and institutions to delve into the burgeoning sector of RWA tokenization. It provides a suite of advanced technology modules, compliance tools, and cross-chain compatibility.
The Mantra mainnet is currently up and running. In March, it successfully secured $11 million during a seed funding round led by Shorooq Partners, Caladan, Three Point Capital, and other well-known investors.
Recently, Mantra launched an OM liquidity pool on Ethereum's Layer 2 network, Base. This allows users to bridge OM tokens and engage with the Mantra ecosystem, giving them early access to various Mantra products being introduced on the Base platform.
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