MultiBank, MAG and Mavryk sign record $30 billion deal to tokenize luxury real estate in the UAE.
United Arab Emirates (UAE) real estate giant MAG and blockchain infrastructure company Mavryk have signed a record-breaking $30 billion real-world asset tokenization (RWA) agreement with Dubai MultiBank Group, the world’s largest financial derivatives institution.
The transaction marks the upcoming launch of MultiBank’s native utility token (MBG) and is the world’s largest RWA tokenization project to date.
Through the agreement, MAG’s luxury real estate projects, including Dubai Creekside, The Ritz-Carlton Residences, and Keturah Reserve, will be offered on the blockchain through MultiBank.io’s regulated RWA marketplace.
Once tokenized, these assets will be available to investors worldwide, and owners will receive daily income directly from the platform.
Talal Mofaq Al Ghaddah, senior executive vice president of MAG, said: “MAG’s $30 billion worth of real estate will be tokenized as individual RWA tokens on the MultiBank platform, with each token appearing on the Mavryk blockchain as the underlying layer 1 infrastructure.”
“MBG tokens provide multiple utility functions in the ecosystem such as transaction discounts, early access to real estate, and a deflationary buyback and burn model,” Al Ghaddah added.
MultiBank tokenizes MAG’s real estate assets
MAG, one of the most prominent real estate developers in the UAE, will tokenize its prime properties.
MultiBank Group will be responsible for overseeing governance, liquidity, and compliance, with the MBG token at its core; Mavryk will be responsible for blockchain issuance and DeFi integration.
“MultiBank’s tokenized assets will have a dual function. They will be able to serve as collateral for derivatives within the MultiBank Group, enabling a smooth transition between tokenized assets and traditional finance,” Al Ghaddah explained.
According to him, the token will fit well into the wider Mavryk ecosystem of DeFi.
MBG tokens add utility to the platform
MBG tokens will support staking, commission payments, VIP levels, and user rewards. It will also adopt a repurchase and destruction mechanism linked to platform revenue to create long-term value for institutional and retail investors.
With the help of tokenized assets, the platform aims to grow from the current $30 billion to $100 billion.
According to the platform’s description, “the goal is to tokenize high-value, income-generating real estate assets that are traditionally difficult to acquire or sell.”
The announcement comes amid a renewed interest in RWA tokenization.
On April 4, BlackRock filed an application to generate units of one of its money market funds on a distributed ledger technology (DLT)-based platform. The platform will use blockchain technology to maintain a mirrored register of unit ownership for investors.
The BLF Treasury Trust Fund (TTTXX), offered exclusively by BlackRock Advisors and The Bank of New York Mellon (BNY), will be tracked via these DLT units.
The money fund's $1.5 million in assets is almost entirely in cash and U.S. Treasuries.