The Real World Asset tokenization industry is growing and attracts key players such as Franklin Templeton, BlackRock and Blackstone.
Cryptocurrencies within this space have performed considerably over the past few months, with their total market capitalization skyrocketing at over $30 billion. Mantra (OM), a popular cryptocurrency, became the second largest RWA coin after ChainLink. That token has skyrocketed 640% over the past 12 months, with a market capitalization of over $6 billion.
Crypto.News recently spoke with Mantra CEO Patrick Mullin about the newly launched ecosystem fund, token performance, and the future of real-world asset tokenization.
Congratulations on the powerful performance of cryptocurrency. What made the mantra stand out because there are so many RWA projects in this space?
thank you! We are proud of the momentum of Mantra (OM) and the growing recognition in the RWA field. What stands out for the mantra is our commitment to creating a fully compliant end-to-end ecosystem for real-world asset tokenization and trading. Our permitless chain was designed from the start to meet regulatory standards.
Recently, we have secured a Virtual Asset Service Provider (VASP) license from the Virtual Asset Regulator (VARA) in Dubai, allowing it to operate as a virtual asset exchange. This places the Mantra as one of the most regulated platforms in the RWA sector today.
Beyond compliance, we drive real-world adoption through strategic partnerships. Most notably, the DAMAC Group has recently committed to tokenizing more than US$1 billion in Dubai real estate. Unlike projects that focus only on one RWA puzzle, Mantra builds a comprehensive ecosystem, from asset tokenization to exchange infrastructure and investment services.
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We have just launched the Mantra Ecosystem Fund. What kind of projects do you aim to support?
In collaboration with Mantra’s capital partners, MEF will deploy this capital over the next four years through a combination of Om-Token Grants and Partner Capital Investments. MEF welcomes projects at all developmental stages around the world with a special focus on RWA and Defi and operates with an open arm policy.
The application can be done with just one pager via the portal. Loans and borrowing, asset management, trading and exchange, infrastructure and tools, derivatives and synthesis.
How does the mantra ensure that fund investments align with regulatory compliance and commitment to security, taking into account the complexity of tokenizing real assets?
MEFs only invest in teams that share similar commitments to compliance and security. Truly scalable adoption for us and those building in RWA comes through compliance and regulatory orientation only.
Therefore, I think achieving PMF is a prerequisite. So the team is as strictly glued as we do. We lend our expertise and networks to ensure that our teams are well positioned in this vertical challenge.
Many blockchain projects have launched ecosystem funds in the past, and have limited success. How do you ensure that your fund’s projects work?
We take a very differentiated approach from previous ecosystem funds.
First, most ecosystem funds refuse to accept that we live in a multi-chain world. As a result, they only work with teams that are exclusively affiliated on the infrastructure layer side. This constrains the various teams that can fund them.
By acknowledging this, this means that you can work with teams across the ecosystem, allowing you to choose from a more diverse range of applications. We want to work with much fewer teams and make bets with more resources. In this way, we believe that our team will be properly invested in us and our commitments, just as we are.
The second difference is that you are about to place a basic, high conviction bet. This distinguishes itself from other approaches that issue small checks. From Day Zero, he says he is looking for a long-term partner for MEF. It not only supports infrastructure, but also setup, distribution, press, etc.
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Mantras have established themselves as leaders in real-world asset tokenization. What unique challenges are there to fill traditional funds with Defi through RWAS?
The biggest challenge facing the Mantra is educating these traditional institutions with new technology stacks, their benefits and risks in the singular pursuit of being blockchain infrastructure partners for asset issuers and managers around the world. And perhaps most importantly, we work with our technology in a compliant and regulatory-oriented way.
We have found that traditional institutions fully understand the benefits of tokenization and are forced to be in a variety of operational and cost-effectiveness. However, there was a reluctance to regulations and compliance from other possible infrastructure partners (L1S/L2S). That’s exactly why compliance and regulations were so at the heart of it, and we designed the L1.
We designed our fabrics not only from high-tech stacks but also from our staff to pursue top-notch licensing/regulatory status. We work with our institutional partners at Lockstep to address all the unique challenges that come with tokenizing a wide range of assets across different classes and jurisdictions.
How is the progress of your partnership with Damac? When can we see the specific results for this?
The partnership with DAMAC has already launched over $1 billion in assets across real estate, hospitality, data centers and other key sectors. We look forward to sharing the details soon.
How is the RWA tokenization market evolving over the next 10 years? And what role does mantra play in shaping its future?
Just like the wider industry, we have evolved from adoption, and adoptions come from a collective made up of both regulatory and institutional players and passionate builders. When it comes to regulations, I believe in an open arm and source approach. t
His measures will work with regulators, as he did with VARA, to obtain the first Decentralized Financial (DEFI) Virtual Asset Service Provider (VASP) license and draft regulations tailored to the parties. This will continue to be done when entering new markets. The next part is to help others try to enter a jurisdiction they already have by sharing their learning.
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