according to the website - By Crypto Daily™
The dream team behind the $10 billion RWA deal aims to make the tokenized real estate market a reality.
Translating elite real estate onto the blockchain is not as simple as creating a meme coin. That’s why working on this typically requires collaboration, the involvement of experts, and experience from various fields. Of course, a network is necessary to ensure traceability and security; a real estate company willing to convert traditional assets into digital assets; and a marketplace that connects tokenized real estate with investors for around-the-clock trading.
This collaborative approach is vividly demonstrated by the alliance ambitiously striving for the tokenization of $10 billion worth of real estate in the United Arab Emirates (UAE). The dream team combines a layer-one blockchain focused on RWA (Mavryk), a global derivatives giant (MultiBank), a Dubai real estate company (MAG Group), and a leader in institutional-grade custody services (Fireblocks). The quartet's goal is to make property ownership accessible to everyone. While the on-chain market for real-world assets (RWA) is already valued at $24.8 billion, this figure is just a small fraction of the total cryptocurrency market capitalization of $3.7 trillion. It’s a drop in the ocean compared to the global real estate market valued at $226 trillion. The expression 'it's still too early' has rarely been so accurate.
Why now?
The development of the cryptocurrency market, primarily Bitcoin and Ethereum, as well as dollar-pegged stablecoins, has prompted institutional investors to explore the opportunities of the Web3 world. As a result, spot BTC ETFs and the BlackRock BUIDL tokenized fund emerged last year, the latter being the largest tokenized RWA to date. Tokenization of real assets involves issuing digital tokens that represent ownership or claims on the underlying asset – bonds, treasury bills, stocks, carbon credits, real estate, gold, loans, artworks, etc. Currently, there are about 340,000 RWA holders (up 21% in the last month) and 256 issuers, with activity distributed across leading blockchains such as Ethereum and Solana.
Meanwhile, a recent Bank of America report notes a growing interest among investors in real assets. Hashkey CEO Dr. Xiao Feng believes that China's return to the cryptocurrency market may focus on stablecoins and RWA.
Naturally, the question arises: 'Why now?'. To be honest, the walls separating tradfi and defi are crumbling, and traditional financial companies are now realizing the revolutionary potential of blockchain. Meanwhile, fintech companies operating in the cryptocurrency space are eager to attract institutional investors by offering them Web3 products and services.
Mavryk, a compliant layer-1 network, is a key element of the aforementioned $10 billion elite real estate deal being brought onto the blockchain. Unlike competitors restructuring their networks to fit the 'trend' of RWA, Mavryk was originally built to serve this market. After the mainnet launch at the end of this year, investors are promised the opportunity to acquire tokenized shares in several elite real estate properties from the MAG Group portfolio and even receive yield on the blockchain backed by that value. Fireblocks, which provides custody for over $7 trillion across more than 100 blockchains, will offer advanced custody services following its recent addition to the founding trio.
Is Dubai the epicenter of the RWA revolution?
It is worth noting that the deal involving Mavryk, MAG, MultiBank, and Fireblocks is not the only one related to Dubai. A strategic partnership between the Dubai Land Department, Prypco, and Ctrl Alt Solutions may also lead to the translation of billions of dollars worth of real estate onto the blockchain.
Dubai's crypto-friendly policies and government investment initiatives have made the emirate a digital business hub, where cutting-edge technologies occupy a prominent place on the national agenda. Moreover, it is one of the few places in the world with clear laws regulating the purchase of real estate with cryptocurrency.
Of course, real estate is just the tip of the iceberg when it comes to ownership-based assets (RWA). However, it is arguably the best way for average investors, as even those who avoid stocks appreciate the appeal of owning real estate.
Gradually, we are approaching a future where anyone can invest in real assets—be it real estate or precious metals—no matter where they are located. Over time, the RWA sector may even 'swallow' the cryptocurrency market that spawned it.
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