Rifad Mahasneh, the head of OKX's Middle East and North Africa division

At a major crypto event in Dubai, Token2049, Rifad Mahasneh, the head of OKX's Middle East and North Africa division, emphasized the importance of real-world asset (RWA) tokenization.

At a major crypto event in Dubai, Token2049, Rifad Mahasneh, the head of OKX’s Middle East and North Africa division, highlighted the significance of real-world asset (RWA) tokenization. He stressed that projects should concentrate on generating real, practical value for everyday use rather than excitement or hype.

“We’re tokenizing things that give real, everyday value. That’s a promising project,” he said, noting that hype alone cannot sustain long-term growth in the Web3 space.

The United Arab Emirates (UAE) is emerging as a frontrunner in real-world asset (RWA) tokenization—the conversion of physical assets, like buildings or land, into digital tokens stored and secured on a blockchain.

On May 1, MultiBank Group signed a massive $3 billion deal with MAG, a UAE real estate company, and Mavryk, a blockchain company, to launch what could become the world’s largest RWA tokenization project. Together, they are aiming to transform real estate into easily transferrable digital assets that can be bought, sold, or used as collateral in DeFi protocols.

The Dubai Land Department, responsible for managing real estate in Dubai, initiated a pilot program on March 19 to tokenize properties into digital tokens on a blockchain, collaborating with Dubai’s crypto regulator, VARA. This initiative is part of Dubai's broader strategy to become a global hub for blockchain and cryptocurrency activity.

Moreover, on January 9, a $1 billion deal was announced between Mantra, a company specializing in tokenization solutions, and Damac Group, a UAE-based conglomerate, to tokenize assets held by Damac. However, on April 13, Mantra's token value plummeted, wiping out billions of dollars in value as part of a broader cryptocurrency sell-off.

These endeavors highlight Dubai's interest in exploring advanced technologies to render real estate more digital and accessible. However, as seen with Mantra, there can be inherent risks and setbacks in this endeavor.

In June 2024, the UAE’s Central Bank unveiled a framework for regulating stablecoins, which are digital currencies typically pegged to the value of a fiat currency. This move signals the UAE’s proactive approach to integrating and regulating emerging technologies in the financial sector.

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