Presented by Mantra

RWA-focused layer-1 blockchain Mantra is the first DeFi platform to secure a license from Dubai’s virtual asset regulator, VARA.

Dubai is a rising market for the blockchain industry that is quickly establishing itself as one of the world’s leading financial centers. As a result, the region has welcomed a myriad of companies, including crypto trading platforms, media companies and decentralized exchanges (DEXs).

The emirate’s flourishing blockchain market is supported by its permissive regulations and advanced licensing system. Crypto assets are clearly defined and categorized, and regulations are coherent and understandable by market participants. The market activities are overseen by five regulators that work hand in glove with each other, and the Virtual Assets Regulatory Authority (VARA) — the Dubai-based regulator entirely focused on crypto assets — is among them.

VARA is responsible for overseeing all virtual asset-related activities, ranging from exchange and payments to custody and advisory services and more as they ever refine and review their rulebooks.

Mantra, a layer-1 blockchain specialized real-world asset (RWA) tokenization, became the first DeFi platform to receive the green light from VARA and obtained a virtual asset service provider (VASP) license. With this license, Mantra became authorized to provide exchange, broker-dealer and management and investment services.

What is a VASP license?

VARA is committed to establishing a best-in-class regulatory framework for virtual assets, positioning Dubai as a global leader in responsible innovation. As the world's first independent virtual assets regulator, VARA has implemented a comprehensive licensing system that governs all regulated virtual asset activities conducted in and from Dubai (excluding DIFC). Firms seeking to operate in exchange, advisory, brokerage, custody, lending, or issuance must obtain the appropriate license from VARA, ensuring compliance with rigorous regulatory, financial, and operational requirements.

Mantra obtained three licenses, gaining authorization to offer exchange services, broker-dealer services and management and investment services for virtual assets.

“By establishing the most timely, comprehensive and built from-the-ground-up framework for virtual assets and Web3, Dubai and VARA have become world leaders in crypto regulation,” said Mantra CEO John Patrick Mullin, adding: “This license was a crucial step for Mantra and a key step in our journey toward global expansion.”

Regulation heralds a rollout of partnerships

The UAE is taking firm steps toward becoming a global blockchain hub. With a digitally-native population, and appealing financial and legal regulations, it’s transforming the MENA region as a result. The country has been the destination of choice for many startups while also attracting well-established companies to expand their operations or relocate entirely.

Mantra already had a presence in the region, which is evident from the previously announced partnerships. Most recently, the company signed a $1 billion agreement with Damac Group, a UAE-based investment conglomerate. The partnership will offer token-based financing for a diverse range of assets, spanning real estate, hospitality, data centers and other critical sectors.

Additionally, the partnership between Mantra and Libre Capital (announced Q4 2024),will see the tokenization of prominent hedge funds, money market funds and private credit funds in the UAE, expanding its financial markets substantially. A partnership with another UAE-based company, MAG, will help finance luxury real estate development in the region.

Previously, Mantra also shared their work with Zand Bank — a fully licensed, all-digital bank operating in the UAE — to develop RWA tokenization frameworks that comply with regulations.

After acquiring the VASP license from VARA, Mantra will start to provide regulated DeFi services in the region as well. As for the future, the project plans to diversify its DeFi offerings with unique products to better serve investors.

The license marks the start of a new phase for Mantra, during which it will focus on diversifying its services in Dubai and integrating tokenized assets into its financial ecosystem. The phase also opens the door for new partnerships and products tailored to the region’s growing virtual asset market.

Find out more about Mantra

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