OKX's Crepto Exchange CEO for the arm of the Middle East and North Africa (MENA) has encouraged the industry to focus on delivering the real-world utility as an interest in real-world assets (RWA) tokenization accelerates.
In an interview with Cointelegraph in the event of token20249 in Dubai, the OKX Mena CEO Rifad Maasneh warned that while tokenization promises, projects should “clearly show” the benefits of tokenizing specific property.
“In some cases, we have to deal with things that don't require tokenization, but in some cases, we are motivating things that really give you real, day -to -day value, right? And if you see the day -to -day value, then that's a promising project,” Maasneh told Cointelegraph.
He said the hype could drive project growth in the web3 space, but providing a sunny amount should be a priority.
RWA tokenization gets traction in the UAE
Maasneh's comments came amidst the rise of real-world tokenization projects in the Middle East, including the United Arab Emirates.
On May 1, the Multibank Group signed a $ 3 billion RWA agreement with the UAE based on the real-estate firm Mag and blockchain infrastructure provider Mavryk-the RWA's largest initiative in the world to the present.
In addition to billions of RWA deals, the UAE government began working on RWA tokenization. On March 19, the Dubai Land Department-the government agency responsible for advancing, organizing and registering real estate in Dubai-a pilot phase of the real-estate tokenization project. The agency works with Dubai's Virtual Assets Regulatory Authority (VARA), the Emirate's crypto regulator.
On January 9, the RWA Project Mantra also signed a $ 1 billion deal with the Damac Group to token the UAE-based conglomery properties. However, months later, Mantra saw one of the largest tokens that collapsed in crypto history, wiping billions -billion in market capitalization on April 13.
Maasneh told Cointelegraph that clear regulations of the region help driving a larger institution to enter tokenization and crypto. He said the clarity of the regulation gives up to understand how major players in space, such as exchanges, are managed.
Related: Real Estate Not the best possession for RWA tokenization – Michael Sonnenshein
UAE stablecoin framework gives confidence in institutions
The executive also praised the region's development of stablecoin regulations. In June 2024, the UAE Central Bank approved a regulation framework for Stablecoin licensing. It clarifies the release, administration and licensing of payment tokens supported by Dirham.
According to Maasneh, it shows the speed of the UAE in regulating crypto-related technologies. The executive also featured that the involvement of the central bank gives great confidence in business entry institutions.
“Other markets are still arguing whether they should have crypto regulations. Here, we move on to the development of Stablecoin regulations. For an investor, you want to know that your stablecoin is controlled. That's a big plus,” Maasneh said.
Since then, major players like Tether have joined the racing by releasing a Dirham pegged stablecoin. On April 29, institutions such as the Sovereign Wealth Fund of Abu Dhabi, the Abu Dhabi Developmental Holding Company (ADQ), First Abu Dhabi Bank and the International Holding Company have partnered to launch a Dirham-Pegged Stablecoin, waiting for regulatory approval.
Magazine: Crypto wants to overthrow banks, now they turn into the stablecoin fight
