The Mantra blockchain community has launched a $108,888,888 ecosystem fund geared toward accelerating the expansion of startups centered on real-world asset (RWA) tokenization and decentralized finance (DeFi), amid rising demand for steady, asset-backed digital merchandise.
Mantra, a layer-1 (L1) blockchain constructed for tokenized RWAs, launched the Mantra Ecosystem Fund (MEF) to speed up the expansion and adoption of initiatives and startups constructing on its community, based on an April 7 announcement shared with Cointelegraph.
Mantra mentioned it’ll deploy the capital over the following 4 years amongst “high-potential blockchain initiatives” worldwide, with funding alternatives sourced by Mantra’s community of companions. The fund’s backers embrace a variety of institutional companions together with Laser Digital, Shorooq, Brevan Howard Digital, Valor Capital, Three Level Capital and Amber Group.
Associated: 0G Basis launches $88M fund for AI-powered DeFi brokers
Mantra CEO John Patrick Mullin mentioned the fund will function an “open-arms coverage, welcoming initiatives at any developmental stage globally with a specific give attention to RWA’s and DeFi.” Mullin advised Cointelegraph:
“The MEF thesis is to spend money on top-tier groups constructing RWA and DeFi functions, in addition to complimentary infrastructure, that can each immediately and not directly help the broader ecosystem.”
Mantra goals to turn into the underlying infrastructure layer for tokenized asset points worldwide, Mullin mentioned.
Supply: Mantra
The launch of the fund comes a month after Mantra grew to become the primary DeFi platform to acquire a digital asset service supplier (VASP) license beneath Dubai’s Digital Belongings Regulatory Authority (VARA).
Associated: Stablecoin guidelines wanted in US earlier than crypto tax reform, consultants say
Investor demand grows for RWAs
The timing of the fund’s launch aligns with rising institutional curiosity in RWAs, that are seen by some as a hedge towards crypto market volatility and broader financial uncertainty.
World fears and uncertainty round US President Donald Trump’s tariffs have impacted investor sentiment throughout markets.
Regardless of a broader market stoop triggered by US tariff-related issues, the worth of tokenized RWAs just lately surged to a file excessive. In keeping with knowledge from RWA.xyz, complete RWA market capitalization reached greater than $19.6 billion as of early April, up from $17 billion in early February.
RWA world market dashboard. Supply: RWA.xyz
Trade watchers beforehand advised Cointelegraph that Bitcoin’s lack of upside momentum could drive RWAs to a $50 billion all-time excessive earlier than the tip of 2025.
The world’s largest asset supervisor, BlackRock, has additionally signaled help for the RWA area.
BlackRock BUIDL capital deployed by chain. Supply: Token Terminal, Leon Waidmann
BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) noticed an over three-fold improve within the three weeks main as much as March 26, from $615 million to $1.87 billion.
Journal: Monetary nihilism in crypto is over — It’s time to dream massive once more