According to Mantra CEO and co-founder John Patrick Marin, tokenization of real-world assets (RWAs) has the potential to revolutionize traditional finance, and a purpose-built blockchain is essential for its rapid adoption.
Mantra bills itself as just such a solution, touting itself as a “security-first” Layer 1 blockchain designed to meet real-world regulatory requirements. According to Marin, tokenizing real-world assets involves more than just recording transactions on a blockchain.
“Purpose-built blockchains like MantraChain are built specifically to address these requirements, integrating both the legal and technical frameworks essential to effectively manage complex operations,” he told Decrypto.
This approach ensures that regulatory compliance, asset-backed security, and a stable, scalable environment are built into blockchain’s core functionality, Marin said, adding that he expects the tokenization of real-world assets to accelerate in the coming years.
“As regulatory frameworks evolve and technology improves, adoption will accelerate rapidly,” he said.
Marin pointed to several factors driving this acceleration, including collaboration with traditional financial institutions.
“We hope to gain momentum with the successful launch of pilot projects that demonstrate significant advantages over traditional systems,” Marin explained, noting that the benefits of tokenization, including increased liquidity, improved efficiency and greater transparency, will be demonstrated.
Marin also highlighted the role of institutional investors, particularly in the commercial real estate sector, in accelerating RWA tokenization.
“Institutional investors will increasingly be attracted to tokenized real estate due to its potential to diversify their portfolios, increase liquidity and optimize yield management,” he predicted. “We have already seen huge inflows and expect this trend to continue to grow exponentially as more areas of finance move to blockchain technology.”
Marin said the Mantra Platform is well-positioned to capitalize on this expected growth with a focus on regulatory compliance and security.
“Mantra Chain is designed to seamlessly integrate with established regulatory frameworks and incorporate strong security measures. These attributes make it a [it] “It’s an attractive platform for traditional investors looking to get involved in blockchain technology,” he said.
According to Marin, the chain’s architecture will incorporate tools to automate compliance processes and support the rapid development of applications while adhering to legal requirements. These features include identity verification tools, anti-money laundering compliance checks, audit trails, etc.
Marin is optimistic about the future of RWA tokenization but acknowledges that challenges remain, including ensuring regulatory compliance, accurately representing digital ownership of physical assets, and managing complex governance structures.
But he believes there is great value in overcoming these hurdles.
“The ability to unlock liquidity and attract a wider investor base can significantly increase asset values,” Marin said, highlighting the sector’s potential profitability.
As real-world assets become increasingly tokenized, Marin envisions a future in which a range of asset classes are tokenized, including infrastructure projects, intellectual property, and luxury goods. He believes this expansion will create new investment opportunities and transform the financial landscape.
Editor: Ryan Ozawa