At the Token2049 conference in Dubai, important aspects of real asset tokenization were discussed. Experts highlighted the prospects and risks of this technology in the financial sector.
Importance of Real Asset Tokenization
Rifad Mahasneh, head of OKX’s Middle East and North Africa division, emphasized the importance of tokenization of real-world assets. He highlighted that projects should focus on creating real practical value for everyday use rather than hype. 'We’re tokenizing things that give real, everyday value. That’s a promising project,' he said.
Major Deals in Tokenization
On May 1, MultiBank Group signed a $3 billion deal with MAG, a UAE-based real estate company, and Mavryk, a blockchain firm, to create the world’s largest real asset tokenization project. They are working together to turn real estate into digital assets that can be easily bought, sold, or traded online. Also, on March 19, the Dubai Land Department started a pilot project to turn properties into digital tokens on a blockchain.
Risks and Future of Tokenization in the UAE
Despite the successes, there are risks involved. On April 13, the value of Mantra’s token crashed, losing billions of dollars in worth, highlighting existing threats in this field. In June 2024, the UAE’s Central Bank created a system to regulate stablecoins, which are digital currencies tied to the UAE Dirham.
The UAE is actively developing real asset tokenization, providing new financial opportunities. However, managing risks in this domain remains crucial.
