Main Points:
- OKX MENA CEO Rifad Mahasneh urges the industry to focus on practical, everyday utility rather than hype in real‑world asset (RWA) tokenization.
- MultiBank, MAG, and Mavryk ink a landmark $3 billion real estate tokenization deal—the largest RWA initiative to date.
- Dubai Land Department launches a government‑backed pilot for property tokenization, in collaboration with VARA.
- Mantra’s $1 billion Damac Group partnership is overshadowed by a dramatic 90 % crash in its OM token.
- UAE Central Bank approved a comprehensive stablecoin licensing framework in June 2024.
- Abu Dhabi’s ADQ, IHC, and FAB announce a dirham‑backed stablecoin, marking institutional entry into regulated tokenized payments.
Hype vs. Practical Utility: OKX MENA CEO’s Perspective
At Token2049 in Dubai, OKX’s MENA division CEO Rifad Mahasneh cautioned that while tokenizing real‑world assets holds promise, many projects pursue buzz rather than genuine use cases. He emphasized, “In some cases, we’re tokenizing things that don’t need tokenization, but in some cases, we’re tokenizing things that actually give you real, everyday value… If you can see that everyday value, then that is a promising project.” Mahasneh argued that tokenization must drive tangible benefits—such as access, liquidity, or yield—rather than speculative excitement, to sustain long‑term growth in the Web3 ecosystem.
Landmark $3 Billion Real Estate Tokenization with MultiBank, MAG, and Mavryk
On May 1, MultiBank Group announced a strategic partnership with UAE developer MAG and blockchain innovator Mavryk to tokenize $3 billion of luxury real estate—covering projects like The Ritz‑Carlton Residences in Dubai—on the Mavryk blockchain. This deal, billed as the largest RWA tokenization initiative ever, introduces the $MBG utility token to power staking, platform fees, and governance. MultiBank will oversee regulatory compliance and liquidity, MAG will supply high‑value property inventory, and Mavryk will handle on‑chain issuance and DeFi integrations. The project aims to scale up to $10 billion in tokenized assets, democratizing access to institutional‑grade real estate.
Government‑Backed Pilot: Dubai Land Department’s RWA Initiative
The Dubai Land Department (DLD) launched a pilot phase of its real estate tokenization project on March 19, collaborating with the Virtual Assets Regulatory Authority (VARA) to convert property title deeds into blockchain‑based tokens. The initiative could represent up to 7 % of Dubai’s property transactions—an estimated 60 billion dirhams by 2033—and aims to enhance transparency, speed, and fractional ownership in real estate markets. VARA has warned that only approved entities may participate, underscoring the importance of clear regulatory oversight to prevent fraud and ensure investor protection.
Mantra’s Ambitious $1 Billion Damac Deal and Subsequent Token Collapse
On January 9, Mantra—a VARA‑licensed RWA blockchain—signed a $1 billion agreement with Damac Group to tokenize real estate and hospitality assets. However, on April 13, Mantra’s native OM token plunged over 90 % from $6.30 to below $0.50, erasing billions in market cap within hours. Mantra’s co‑founders blamed forced liquidations on centralized exchanges, but the crash has raised questions about liquidity buffers and governance in RWA tokenization platforms. The incident highlights the need for robust risk management and transparent tokenomics when bridging real‑world assets with on‑chain markets.
Global RWA Market Trends: Institutional Adoption and Market Size Surge
Institutional interest in RWA tokenization is accelerating globally. Data from RWA.xyz shows that six entities—including BlackRock’s BUIDL and Franklin Templeton’s BENJI—account for 88 % of tokenized U.S. Treasuries, signaling concentration among major funds. Meanwhile, total value locked in RWA protocols surpassed $10 billion, up over 100 % year‑to‑date, with Maker RWA and BlackRock’s money market fund leading adoption. These developments reflect a shift from experimental pilots to scalable financial tools, as traditional asset managers and blockchain firms converge to unlock liquidity and innovate capital markets.
Stablecoin Regulation: UAE Central Bank’s Framework and Institutional Launches
In June 2024, the Central Bank of the UAE approved its Payment Token Services Regulation (PTSR), establishing licensing and oversight for dirham‑backed stablecoins and payment token services. The PTSR mandates that issuers, custodians, and transfer agents obtain CBUAE approval before operating any payment token activities, while permitting registered foreign issuers to serve UAE investors. This framework positions the UAE among the first major economies to formalize stablecoin rules, offering clearer “rules of the road” for market participants.
Building on this, on April 28, Abu Dhabi’s sovereign wealth fund ADQ, conglomerate IHC, and First Abu Dhabi Bank (FAB) announced plans to launch a fully regulated dirham‑pegged stablecoin—subject to Central Bank approval—operating on the UAE‑developed ADI blockchain. The partnership aims to provide secure, scalable digital payments for consumers, businesses, and emerging use cases like machine‑to‑machine transactions, embodying the CBUAE’s regulatory vision and institutional confidence in blockchain innovation.
What Lies Ahead: Balancing Innovation and Regulation
Looking forward, a BCG report projects the tokenization market could reach $18.9 trillion by 2033, driven by sectors such as private credit, real estate, and intellectual property once foundational use cases and regulatory clarity align. While the UAE leads with proactive frameworks and high‑profile deals, global adoption hinges on interoperable standards, robust governance models, and risk controls to safeguard against market volatility and operational failures. Stakeholders must collaborate on technical infrastructure, legal harmonization, and investor education to realize the full potential of tokenized RWAs and regulated digital currencies.
Conclusion
The UAE’s strategic push—through regulatory initiatives, landmark tokenization agreements, and institution‑backed stablecoins—demonstrates a concerted effort to marry blockchain innovation with real‑world financial needs. As OKX’s MENA CEO warns against tokenizing without purpose, market participants are reminded that sustainable growth will stem from projects that deliver genuine utility, enforceable governance, and seamless integration with traditional finance and regulatory environments.
