Challenges in the RWA Space: Quality Assets and Value Creation Are Key, Says MANTRA Chain
The Real-World Asset (RWA) tokenization sector faces hurdles beyond regulatory compliance, with high-quality assets and tangible value creation being crucial for success, according to John Patrick Mullin, CEO and co-founder of MANTRA. Speaking at a recent Cointelegraph X Spaces event, Mullin emphasized the need for innovative approaches within progressive regulatory frameworks to drive the RWA market forward.
Mullin explained that simply tokenizing assets does not inherently solve their underlying issues. “Many people bring low-quality assets, expecting tokenization to magically increase their value. True success lies in delivering real value for both the issuer and the buyer,” he noted. Value creation could include fractional access for retail investors or enhanced liquidity and composability for institutions, highlighting the importance of high-quality products.
MANTRA’s RWA-Focused Blockchain
Launched in October 2024, MANTRA is a Layer 1 blockchain designed for RWA tokenization, with a strong emphasis on compliance. The network allows institutional investors to conduct large-scale RWA transactions securely while enabling access to traditionally illiquid assets. The platform’s OM token supports staking, governance, and transaction activities across the MANTRA ecosystem.
“Our aim is to serve as the ledger of record for RWA issuance,” Mullin said, emphasizing that regulatory enforcement is best managed at the application level, leaving MANTRA to focus on providing technology for compliant partnerships. The network includes features like the MANTRA Token Service (MTS), which ensures proper governance through mechanisms for burning, freezing, and reminting tokenized assets.
Expanding Ecosystem and Global Reach
MANTRA operates in regions including Hong Kong, Singapore, and Dubai, collaborating with regulators to refine frameworks for RWA tokenization. Partnerships with major entities like BlackRock, Chainlink, and Google Cloud have bolstered its ecosystem, which includes secondary marketplaces, a liquidity hub named Omega, and collaborations for DeFi products like fractional real estate and private credit.
Mullin also highlighted the exploration of tokenizing intellectual property, tapping into the emotional and financial value tied to music, art, and sports-related IP.
A Three-Phase Vision for RWA Growth
Mullin outlined MANTRA’s phased approach to RWA development:
- Phase One: Focus on onboarding high-quality assets onto the blockchain.
- Phase Two: Develop liquidity and secondary market venues.
- Phase Three: Unlock composability, enabling RWAs to be integrated into various DeFi applications. For instance, tokenized house titles could be used as collateral in lending protocols.
Ambitious Goals for the Future
Looking ahead, Mullin expressed his aspiration for MANTRA to reach $100 billion in RWA total value locked (TVL) by 2026. While progress is currently slow, with hands-on education for new users, he sees immense potential for the space to grow exponentially, ultimately bringing unprecedented capital and participants into the blockchain ecosystem. “This is a powerful journey that will take time, but we’re on the right path,” he concluded.
