MANTRA Finance can now legally function as a Virtual Asset Exchange and offer Broker-Dealer, Management, and Investment Services in the UAE.
MANTRA Finance, a Hong Kong-based decentralized finance (DeFi) platform, has recently secured a Virtual Asset Service Provider (VASP) license from Dubai’s Virtual Assets Regulatory Authority (VARA).
The VASP license is an important milestone for MANTRA in terms of regulatory compliance and security. The legalization of this kind gives the decentralized exchange and financial platform an opportunity to introduce innovative financial products tailored to investors worldwide as well as to scale operations in the Middle East, focusing on the tokenization of real-world assets (RWAs).
Earlier this year, MANTRA entered into a $1 billion agreement with Dubai-based DAMAC Group to tokenize assets in the region. With this partnership, DAMAC’s tokenized assets may be available on the MANTRA chain.
Integrating blockchain technology into traditional asset management involves converting rights or ownership of assets, such as real estate, into digital tokens on a blockchain, facilitating online ownership and trading. For example, the forward-thinking government of El Salvador last year conducted a tokenized asset raise where shares issued on the Bitcoin layer 2 Liquid Network allowed investors to earn a share in a new Hampton by Hilton hotel.
MANTRA Chain infrastructure enables the seamless fractionalization and tokenization of real-world assets, including art, commodities, and real estate. It offers a secure Decentralized Identity (DID) system leveraging Soulbound NFTs for enhanced identity verification and simplified KYC/AML compliance. This ecosystem supports developers and institutions by providing advanced technology modules, compliance mechanisms, and cross-chain interoperability in the evolving RWA tokenization space. Besides, it serves as a bridge between decentralized and traditional finance spheres.
The Virtual Assets Regulatory Authority (VARA), an independent crypto regulatory body in Dubai, released rulebooks outlining the regulatory framework virtual assets services providers in the country must adhere to in 2023. The regulatory framework for digital assets was developed to encourage greater investment and innovation in the cryptocurrency sector of Dubai. This initiative aims to balance market growth with financial stability and security, ensuring a well-regulated environment for digital asset activities.
The acquisition of the VARA license and strategic partnerships with institutions like DAMAC position MANTRA at the forefront of digital innovation in the UAE, the country that aims to become a global hub for digital assets.
