The $16 Trillion Opportunity: MANTRA's Vision for RWA Tokenization
Bringing RWA On-chain Starting with the Middle East and Asia
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Blockchain technology and cryptocurrencies were born from a vision of creating an alternative financial system independent of the traditional financial system. Yet, more than a decade after Bitcoin's inception, it's becoming clear that the mainstream adoption of crypto is not from replacing the existing financial system, but by integrating with it.
As blockchain technology matures, we're witnessing that traditional finance is increasingly embracing blockchain. This convergence of traditional finance and blockchain innovation has given birth to a revolutionary concept: Real World Asset (RWA) tokenization.
RWA tokenization promises to democratize access to previously illiquid assets, enhance market efficiency, and create new avenues for economic growth and financial inclusion. Larry Fink, CEO of BlackRock, the world's largest asset manager, captures this potential: "I believe the next generation for markets, the next generation for securities will be tokenization of securities."
How big is this sector and what is the potential disruption? The existing market projections show a significant opportunity. According to the BCG report from 2022, the market cap of tokenization of global illiquid assets is projected to be a $16 trillion by 2030, and represents 10% of global GDP.
In contrast, the more recent 2024 McKinsey analysis projects that the total tokenized market capitalization could reach around $2 trillion by 2030. The forecast ranges from $1 to $4 trillion and takes into account factors such as regulatory challenges, technical complexities, and the need for greater coordination among market participants to achieve widespread adoption of tokenization.
Ondo Finance is the leading RWA protocol where the price is 5x since its launch at the start of this year, but another RWA project had its price increased by over 30x in the past 1 year.
That project is MANTRA Chain ($OM), with a recent $11 million funding round led by Shorooq Partners, is positioning itself at the forefront of this revolution, focusing on constructing regulatory-compliant infrastructure and empowering developers to create RWA-focused applications.
In this report, we will explore MANTRA Chain as well as the following topics:
What is RWA Tokenization and its pros and cons
Deep Dive into MANRA Chain
Challenges and opportunities
Future implications of this technology on global finance