Mantra Secures First VARA VASP License for RWA Tokenization in Dubai
1min read Dubai's crypto regulator, the Virtual Assets Regulatory Authority (VARA), has granted a Virtual Asset Service Provider (VASP) license to Mantra, a layer-1 blockchain specialized in real-world asset (RWA) tokenization. This marks a significant milestone for the decentralized finance (DeFi) platform, as it becomes the first to secure such a license from VARA.
Dubai, a rising market for the blockchain industry, has been rapidly establishing itself as one of the world's leading financial centers. The emirate's flourishing blockchain market is supported by its permissive regulations and advanced licensing system. VARA, the Dubai-based regulator entirely focused on crypto assets, oversees all virtual asset-related activities, ranging from exchange and payments to custody and advisory services.
Mantra, a layer-1 blockchain specialized in RWA tokenization, has become the first DeFi platform to receive a VASP license from VARA. With this license, Mantra is authorized to provide exchange, broker-dealer, and management and investment services. The company's CEO, John Patrick Mullin, expressed his excitement about this crucial step in Mantra's journey towards global expansion.
The United Arab Emirates (UAE) is taking firm steps towards becoming a global blockchain hub. With a digitally-native population and appealing financial and legal regulations, the country is transforming the Middle East and North Africa (MENA) region. Mantra, already present in the region, has announced several partnerships, including a $1 billion agreement with Damac Group for token-based financing and a partnership with Libre Capital to tokenize prominent hedge funds and private credit funds in the UAE.
With the VASP license, Mantra will start providing regulated DeFi services in the region. The project plans to diversify its offerings with unique products to better serve investors. The license marks the beginning 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. This phase also opens the door for new partnerships and products tailored to the region's growing virtual asset market.
