OKX MENA CEO Rifad Mahasneh Urges the Industry to Focus on Delivering Real-World Utility

OKX MENA CEO Rifad Mahasneh Urges the Industry to Focus on Delivering Real-World Utility as Interest in Real-World Asset (RWA) Tokenization Accelerates

Crypto exchange OKX’s CEO for its Middle East and North Africa (MENA) arm hopes to see the industry focusing more on delivering real-world utility as interest in real-world asset (RWA) tokenization accelerates, he told Cointelegraph on Thursday, September 5.

Speaking at the Token20249 event in Dubai, Rifad Mahasneh, CEO of MENA at crypto exchange OKX, warned that while tokenization is promising, projects must “clearly demonstrate” the benefits of tokenizing specific assets.

“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, right? And if you can see that everyday value, then that is a promising project,” Mahasneh said.

He noted that hype can drive project growth in the Web3 space, but providing value for people’s daily lives should be prioritized.

RWA tokenization projects are gaining momentum in the United Arab Emirates. On May 1, MultiBank Group signed a $3 billion RWA initiative with the UAE-based real-estate firm MAG and blockchain infrastructure provider Mavryk — the largest RWA initiative to date.

In addition to billions in RWA deals, the UAE government has started working on RWA tokenization. On March 19, the Dubai Land Department — the government agency responsible for promoting, organizing and registering real estate in Dubai — announced a pilot phase of its real-estate tokenization project. The agency is working with Dubai’s Virtual Assets Regulatory Authority (VARA), the emirate’s crypto regulator.

On January 9, RWA project Mantra also signed a $1 billion deal with the UAE-based conglomerate Damac Group to tokenize the assets of the conglomerate. However, months later, Mantra saw one of the biggest token collapses in crypto history, wiping out billions in market capitalization on April 13.

Highlighting the legal and regulatory clarity in the region, Mahasneh noted that this drives bigger institutions to get into tokenization and crypto. According to him, the clarity allows understanding of how key players in the space, like exchanges, are governed.

The executive also praised the progress in stablecoin regulations. In June 2024, the Central Bank of the UAE approved a regulatory framework for stablecoin licensing. This clarified the issuance, supervision and licensing of dirham-backed payment tokens.

According to Mahasneh, this demonstrates the UAE’s speed in regulating crypto-related technologies. The executive also highlighted that the central bank's involvement gives institutions extra confidence in entering the business.

“Other markets are still debating whether they should have crypto regulations. Here, we moved into developing stablecoin regulations. For an investor, you want to know that your stablecoin is regulated. That’s a big plus,” Mahasneh concluded.

Since then, major players like Tether have joined the race by issuing a dirham-pegged stablecoin. In April, institutions like Abu Dhabi's sovereign wealth fund, the Abu Dhabi Developmental Holding Company (ADQ), First Abu Dhabi Bank and the International Holding Company partnered to launch a dirham-pegged stablecoin, pending regulatory approval.