RWA Tokenization Gains Traction in the UAE as OKX MENA CEO Calls for Real-World Utility

The CEO of crypto exchange OKX’s Middle East and North Africa (MENA) division has urged the industry to prioritize real-world utility as interest in tokenizing real-world assets (RWAs) continues to grow.

In an interview with Cointelegraph at the Token2024 event in Dubai, OKX MENA CEO Rifad Mahasneh said that while the concept of 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 explained.

He added that hype can drive project growth in the Web3 space, but ultimately, projects should focus on providing value that people use in their daily lives.

RWA tokenization in the UAE

Mahasneh’s comments come as the Middle East, particularly the United Arab Emirates, is seeing an influx of projects focused on RWA tokenization.

Earlier this year, MultiBank Group signed a $3 billion RWA deal with 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 also started working on RWA tokenization. In March, the Dubai Land Department announced a pilot phase of its real-estate tokenization project with the emirate’s crypto regulator, Dubai’s Virtual Assets Regulatory Authority (VARA).

Earlier this year, RWA project Mantra also signed a $1 billion deal with Damac Group to tokenize the assets of the UAE-based conglomerate. However, later this year, Mantra saw one of the biggest token collapses in crypto history, wiping out billions in market capitalization.

Speaking to Cointelegraph, Mahasneh noted that the region’s clear regulations are helping to drive bigger institutions into tokenization and crypto. He explained that the regulatory clarity allows for an understanding of how key players in the space, like exchanges, are being governed.

“The institutions are coming in because they see the regulatory framework. For example, the central bank is now working on stablecoin regulations, which no other market in the world has yet. They’re already thinking about the next step in the crypto space,” Mahasneh stated.

The executive added that the UAE central bank's involvement in crypto would give institutions extra confidence in entering the business.

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