MultiBank Group Tokenizes $300M of MAG Real Estate Assets in RWA Tokenization Deal

MultiBank Group, the world's largest financial derivatives institution based in Dubai, has signed a $3 billion real-world asset (RWA) tokenization agreement with United Arab Emirates (UAE)-based real estate giant MAG and blockchain infrastructure provider Mavryk.

The deal, which is the largest RWA tokenization initiative globally to date, will see MAG's ultra-luxury real estate projects — including The Ritz-Carlton Residences, Dubai, Creekside and the Keturah Reserve — brought onto the blockchain via MultiBank.io's regulated RWA marketplace, according to a press release shared with Cointelegraph.

Once tokenized, these assets will be available to global investors and will generate daily yield for holders directly on the platform.

"The $3B worth of MAG's real estate will be tokenized as individual RWA tokens on MultiBank's platform, each represented on the Mavryk blockchain, as the underlying layer-1 infrastructure," said Talal Moafaq Al Gaddah, senior executive vice chairman of MAG.

Al Gaddah added that the $MBG token provides ecosystem utility, including trading discounts, early access to properties, and a deflationary buyback-and-burn model.

MultiBank tokenizes MAG real estate

MAG, one of the UAE's most prominent developers, will contribute its premium real estate portfolio for tokenization.

Mavryk will handle blockchain issuance and DeFi integrations, while MultiBank Group will manage regulatory compliance, liquidity and governance, with the MBG token at the core of the system.

"Tokenized assets issued by MultiBank will have dual utility. Within the MultiBank Group, they can be used as collateral for derivatives, creating a seamless bridge between traditional finance and tokenized assets," Al Gaddah said.

He said that these tokens are fully interoperable with the broader Mavryk DeFi ecosystem.

The MBG token will provide users with staking opportunities, generate revenue for the platform, and be used for paying MultiBank.io's internal and external service fees.

MBG token adds platform utility

The MBG token will also be used for VIP tiers that unlock trading discounts and priority customer support. It will also feature a buyback-and-burn mechanism tied to platform revenues, creating long-term value for both institutional and retail participants.

The platform aims to scale beyond the initial $3 billion to as much as $10 billion in tokenized assets.

The announcement comes amid renewed interest in RWA tokenization.

On April 30, BlackRock filed to create digital ledger technology shares from one of the firm's money market funds, which will leverage blockchain technology to maintain a mirror record of share ownership for investors.

The DLT shares will track BlackRock's BLF Treasury Trust Fund (TTTXX), which may only be purchased from BlackRock Advisors and The Bank of New York Mellon (BNY).

The money market fund holds over $150 million worth of assets, invested almost entirely in US Treasury bills and cash.