DUBAI (Reuters) – Mantra, a blockchain platform focused on real assets (RWAs), said on Thursday it has signed an agreement with Dubai-based real estate developer Damac Group to tokenize assets in the Middle East worth at least $1 billion, the two companies said on Thursday.
Asset tokenization allows rights or ownership of assets, including RWAs, to be converted into digital tokens on the blockchain, which can then be owned and traded online.
DAMAC, one of Dubai’s largest real estate developers, whose assets include real estate and data centres, invests in data centers around the world.
Its president, Hussain Sajwani, and US President-elect Donald Trump announced on Tuesday that it would invest $20 billion in US data centers in the coming years.
“DAMAC is always exploring new technologies to enhance our product offerings. The partnership with Mantra is a natural extension of our commitment to innovation and future-proof solutions,” Amira Sajwani, general manager of sales and development at the developer, said in a statement.
The two companies said that their assets in the Middle East will be available early this year in the Mantra series.
Last year, Mantra agreed with real estate developer MAG to tokenize real estate assets worth a total of $500 million, starting with a residential project in Dubai, the tourism and business hub of the Gulf region.
The UAE and the city aim to become a global hub for digital assets, including the cryptocurrency 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 own blockchain platform using a database to record real estate contracts, including rent and registrations, and link them to utility and communications accounts.
(Reporting by Federico Macchioni; Editing by Barbara Lewis)