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 on Thursday.
Asset tokenization allows rights to, or ownership of, assets, including RWAs, to be converted into digital tokens on a blockchain, which can then be owned and traded online.
DAMAC, one of Dubai's largest developers, whose assets include real estate properties and data centers, has been investing in data centers around the world.
On Tuesday, its Chairman Hussain Sajwani and US President-elect Donald Trump announced that they would invest $20 billion in data centers in the United States in the coming years.
“DAMAC is always exploring new technologies to enhance our product offerings. Partnering with MANTRA is a natural extension of our commitment to innovation and cutting-edge solutions,” said the developer's Managing Director of Sales and Development Amira Sajwani in a statement.
Its assets in the Middle East will be available early this year on the MANTRA chain, the two companies said.
Last year, MANTRA agreed with developer MAG Property Development to tokenize real estate assets worth $500 million overall, starting with a residential project in Dubai, the tourism and business hub of the Gulf.
The United Arab Emirates and the city aim to become a global center for digital assets, including the crypto industry, and are working to attract some of the biggest companies in the sector and to develop the regulation of virtual assets.
In 2017, the Dubai Land Department launched its blockchain platform using a database to record real estate contracts, including leasing and registrations and link them to utility and telecommunication accounts.
(Reporting by Federico Maccioni, editing by Barbara Lewis)