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Tokenizing Real-World Assets Requires Dedicated Blockchain, Says Mantra CEO
The tokenization of real-world assets (RWA) has the potential to revolutionize traditional finance and a dedicated blockchain is critical to its rapid adoption, according to John Patrick Mullin, CEO and co-founder of Mantras.
Mantra bills itself as just such a solution, billed as a “security-first” layer-1 blockchain designed to keep up with real-world regulatory requirements. According to Mullin, tokenizing real-world assets involves more than simply recording transactions on a blockchain.
“Dedicated blockchains like Mantra Chain are specifically designed to meet these requirements, integrating both the legal and technical frameworks essential to effectively manage such complex operations,” he told Decrypt.
This approach ensures that regulatory compliance, asset-backed security, and a stable, scalable environment are built into the core functionality of blockchain, Mullin said, adding that he expects the tokenization of real-world assets to take off in the coming years.
“As regulatory frameworks evolve and technology advances, adoption is likely to accelerate rapidly,” he said.
Mullin highlighted several factors that are driving this acceleration, including collaborations with traditional financial institutions.
“I expect momentum to increase through the successful launch of pilots that demonstrate substantial advantages over traditional systems,” Mullin said, which he said will demonstrate the benefits of tokenization, such as increased liquidity, greater efficiency and greater transparency.
Mullin also highlighted the role of institutional investors in accelerating RWA tokenization, particularly in the commercial real estate sector.
“Institutional investors will increasingly be attracted to tokenized real estate for its potential to diversify portfolios, increase liquidity, and optimize yield management,” he predicted. “We have already seen massive inflows of funds and I expect this trend to continue to grow exponentially as more sectors of finance transition to blockchain technology.”
Mullin said the Mantra platform is positioning itself to take advantage of this expected growth by focusing on regulatory compliance and security.
“Mantra Chain is designed to seamlessly integrate with established regulatory frameworks and include strong security measures. These attributes make [it] an attractive platform for traditional investors looking to engage with blockchain technology,” he said.
The chain’s architecture incorporates tools that automate the compliance process to support rapid application development while meeting legal requirements, Mullin said. These capabilities include identity verification tools, anti-money laundering compliance controls, and audit trails.
While Mullin is optimistic about the future of RWA tokenization, he acknowledges that challenges remain. These include ensuring regulatory compliance, accurately representing digital ownership of physical assets, and managing complex governance structures.
However, he believes that overcoming these hurdles will unlock significant value.
“The ability to unlock liquidity and attract a broader pool of investors can significantly increase the value of assets,” Mullin said, noting the potential profitability of the sector.
As the tokenization of real-world assets gains traction, Mullin envisions a future in which multiple asset classes, including infrastructure projects, intellectual property, and luxury goods, are tokenized. This expansion, he believes, will open up new investment opportunities and reshape the financial landscape.
By Ryan-Ozawa