Mantra Introduces $108M Ecosystem Fund to Power RWA and DeFi Projects

The Mantra blockchain network has launched a significant initiative with the introduction of a $108.88 million fund aimed at accelerating the adoption of decentralized finance (DeFi) and real-world asset (RWA) tokenization projects.

This new fund is part of Mantra’s strategy to foster innovation and support startups developing solutions on its blockchain, which focuses on tokenizing tangible assets to create more stable digital products.

With institutional interest in tokenized assets growing, the Mantra Ecosystem Fund (MEF) plans to distribute its capital over the next four years to high-potential blockchain projects around the world. The fund’s backers include prominent institutional players such as Laser Digital, Shorooq, and Brevan Howard Digital, among others. Mantra’s CEO, John Patrick Mullin, emphasized that the fund is open to projects at any stage of development and will focus on driving growth in RWA and DeFi sectors, aiming to build essential infrastructure that supports the broader blockchain ecosystem.

This development comes shortly after Mantra secured a virtual asset service provider license in Dubai, marking a key regulatory milestone. The fund’s launch is also timely, coinciding with a growing institutional appetite for RWAs, which are seen as a hedge against market volatility and economic uncertainty. Tokenized RWAs have recently experienced significant growth, reaching a market capitalization of $19.6 billion by April, up from $17 billion in February.

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Despite broader economic pressures, the RWA sector continues to thrive. Experts predict that this market could continue to rise, with some forecasting a potential $50 billion market cap by 2025. Additionally, firms like BlackRock are showing increasing interest in RWAs, with its USD Institutional Digital Liquidity Fund (BUIDL) seeing a significant increase in value over a short period.

Mantra’s move to launch this ecosystem fund highlights its ambition to become a leading infrastructure provider in the rapidly growing space of tokenized assets and decentralized finance. The fund is designed to support innovations that will help bridge the gap between traditional finance and blockchain-powered solutions.

Alexander Stefanov