OKX MENA CEO Rifad Mahasneh, speaking at the Token2049 event in Dubai, emphasized the importance of delivering real-world utility in RWA tokenization projects. He warned that projects must clearly demonstrate the benefits of tokenizing specific assets. Mahasneh highlighted that providing everyday value should be a priority, even as hype drives growth in the Web3 space.
His comments come amidst increasing RWA tokenization projects in the Middle East, including the UAE. On May 1, MultiBank Group signed a $3 billion RWA agreement with MAG and Mavryk. Dubai Land Department announced a pilot phase of its real-estate tokenization project on March 19, working with VARA.
On January 9, Mantra signed a $1 billion deal with Damac Group, but later faced a significant token collapse on April 13. Mahasneh praised the region's clear regulations, noting that they drive institutional interest in tokenization and crypto. He also highlighted the UAE's progress in stablecoin regulations, with the Central Bank approving a regulatory framework in June 2024.
Since then, Tether and other major players have pursued dirham-pegged stablecoins. On April 29, Abu Dhabi's ADQ, First Abu Dhabi Bank, and International Holding Company partnered to launch a dirham-pegged stablecoin, pending regulatory approval. Mahasneh believes the UAE's proactive approach to regulation gives institutions confidence in the crypto business.
This article is based on our author's analysis of materials taken from the following resource: Cointelegraph.