UAE Consortium Tokenizes $10 Billion in Real Estate to Boost RWA Market

A consortium of blockchain and real estate experts is pushing forward with a groundbreaking initiative to tokenize $10 billion worth of property in the United Arab Emirates (UAE), with the aim of transforming the global real-world asset (RWA) market. The project brings together Mavryk, a Layer-1 blockchain built specifically for RWAs; MultiBank, a global derivatives firm; MAG Group, a Dubai-based real estate developer; and Fireblocks, a leading digital asset custody provider. Together, the partnership seeks to tokenize luxury properties and offer fractionalized digital ownership, making real estate investment more accessible to a broader audience [1].

The RWA sector is still in its early stages, with a current market size of $24.8 billion, a fraction of the $3.7 trillion crypto market and the $226 trillion global real estate market. Despite its small footprint, the sector is gaining momentum as traditional financial institutions begin to embrace blockchain technology. The launch of spot Bitcoin ETFs and BlackRock’s BUIDL tokenized fund—currently the largest RWA product—highlights a growing institutional appetite for digital assets [1].

Tokenization allows real-world assets to be represented as digital tokens on a blockchain, enabling fractional ownership and 24/7 trading. This innovation is particularly attractive for high-value assets like property, which are traditionally illiquid and accessible only to a limited pool of investors. According to a recent Bank of America report, investor interest in RWAs is on the rise. Hashkey CEO Dr. Xiao Feng has also suggested that China’s future engagement with crypto may focus on stablecoins and RWAs [1].

Mavryk stands out in the RWA space by being designed from the ground up to support real-world asset tokenization. Unlike other blockchain platforms that are retrofitting their networks for RWAs, Mavryk’s architecture is tailored for this use case. The platform is expected to launch its mainnet later this year, allowing investors to purchase tokenized shares in MAG Group’s high-end properties and earn on-chain yield backed by real estate value. Fireblocks will provide custody services for these tokenized assets, securing over $7 trillion in assets across more than 100 blockchains [1].

Dubai’s role in this initiative is pivotal. The city has emerged as a global hub for blockchain innovation, driven by its crypto-friendly regulatory environment and public investment strategies. A separate partnership between the Dubai Land Department, Prypco, and Ctrl Alt Solutions also aims to tokenize billions in real estate, underscoring Dubai’s ambition to become the epicenter of the RWA revolution [1].

Real estate is being positioned as the ideal entry point for mainstream investors into the tokenized asset space. While stocks and other financial instruments require a certain level of risk tolerance, real estate is a familiar and tangible asset class. By tokenizing property, the barriers to entry—such as high minimum investments and limited liquidity—are being reduced, opening up new opportunities for global participation [1].

The long-term vision is a future where tokenized assets like property and precious metals can be traded on a global scale, transcending geographical and regulatory boundaries. If the RWA sector continues to grow at its current pace, it could eventually surpass the crypto market that gave it birth, reshaping the landscape of global finance [1].

Source: [1] Dream Team Behind $10bn RWA Deal Aims to Make Tokenized Property Market a Reality (https://coinmarketcap.com/community/articles/6891eeb2305a424e52fc5495/)