Last month, MANTRA, the Hong-Kong-based vertically integrated and regulatory-compliant blockchain ecosystem raised $11 million funding led by Shorooq Partners, a leading technology investor in the MENA Region.
The Layer 1 blockchain for Real World Assets (RWA) will look at accelerating its adoption of RWA tokenisation in the MENA region and Asia. With this, the startup aims to simplify the buying and selling of assets, make investing more accessible in the Middle East and Asia, create opportunities to enable billions of dollars in institutional capital and move onchain
MANTRA also looks to empower traditional finance (TradFi) companies to tap into digital asset investment opportunities and blockchain technology.
The MENA focus
The funding will help Mantra with three main objectives: Construct regulatory-compliant infrastructure that adheres to global standards, empower developers with the tools needed to create RWA-focussed protocols on the MANTRA chain, and expand tokenisation of real-world assets while spotlighting market opportunities between the Middle East and North Africa and Asia.
The MANTRA chain is a Middle East-focussed project and is in the final stages of securing licensures from VARA, Dubai’s crypto regulator.
Why MANTRA?
But what makes MANTRA unique? And why would one believe that MANTRA can achieve this? The investor backing and belief starts with John Patrick Mullin, co-founder and CEO, MANTRA.
“The founder possesses a unique blend of financial expertise and strategic acumen. Moreover, the CEO has a notable tenure within the crypto space, spanning over a decade. This extensive experience suggests a deep understanding of the intricacies of both traditional financial systems and emerging blockchain technologies. Additionally, the conversation alludes to a team with diverse skill sets,” said Shane Shin, Founding Partner, Shorooq Partners in a conversation with edge/.
The founder’s journey
Mullin had begun his journey in the financial space in the banking sector in Hong Kong in 2013. While there, he was exposed to different aspects of the business. “It was during this time that I became intrigued by the emerging opportunities in the cryptocurrency spaces, particularly in the decentralised finance (DeFi) space,” added Mullin.
This led to the initial seeds that helped establish MANTRA. While the business started as a crypto platform, it had to pivot after the industry implosion in 2022.
“Our decision to pivot towards building our own blockchain was driven by a strategic assessment of the limitations and opportunities within the DeFi ecosystem. While initially focused on establishing a retail focused DeFi platform with Mantra Bell, we recognised the inherent challenges of sustainability and scalability within this model. Moreover, the ability for anyone to fork existing code and launch a new project posed significant challenges in terms of differentiation and long-term viability,” added Mullin.
Drawing upon his background in brokerage and experience navigating regulatory landscapes, the team identified a compelling opportunity to bridge the gap between DeFi and traditional finance. This led them to explore the tokenisation of assets such as US equities and treasuries in a self-custodial, on-chain fashion. However, challenges such as regulatory constraints in the US market and scalability issues on existing platforms prompted us to explore alternative solutions.
The pivot
“Ultimately, we gravitated towards leveraging the Cosmos ecosystem to develop an application-specific blockchain tailored to our unique requirements. This strategic shift enables us to not only address the shortcomings of existing solutions but also to pioneer innovative approaches to governance, compliance, and user experience within the DeFi space,” said Mullin.
He explained the MANTRA chain has a host of features designed to enhance security, scalability and user experience within the DeFi landscape. At its core, the blockchain leverages attribute-based permissioning to facilitate customizable governance and compliance mechanisms.
“By integrating decentralised identity verification protocols, we ensure secure transactions while complying with regulatory requirements. One of the defining aspects of our blockchain is its focus on scalability and low transaction costs. By leveraging the Cosmos ecosystem, we can achieve high throughput and low latency, thereby enhancing the efficiency of our platform and enabling seamless user interactions,” added Mullin.
The MANTRA chain architecture facilitates seamless integration with existing financial infrastructure, allowing users to connect their identities, wallets, and bank accounts to access decentralised financial products with ease.
Currently, investors are following a cautious yet optimistic outlook towards blockchain, especially within the Middle East, as there is a focus towards decentralisation in the region.
“There has been a hype in the space, but the space needs a nuanced understanding. Currently, we believe the UAE is in the position to be a global leader in the blockchain space as the region already has a blockchain strategy. There are key trends such as the integration of real-world assets and the rise of decentralised finance (DeFi) as pivotal developments. Furthermore, the intersection of AI and blockchain is a promising area, albeit one plagued by excessive hype, necessitating a discerning approach to investment and development,” added Shin.
Cautious optimism
While acknowledging the inherent risks associated with venture capital investments, the Shin remained bullish on Mantra’s long-term prospects, envisioning them as pioneers in the blockchain space within Dubai and beyond. The expectation is for Mantra to bridge the gap between Asia and the Middle East, leveraging its unique expertise to integrate real-world assets with blockchain technology effectively.
“This strategic positioning is seen as pivotal in tapping into the vast potential of both regions and facilitating cross-border innovation. We Mantra to excel in navigating regulatory frameworks and maintaining integrity, thereby distinguishing itself as a trusted player in the industry,” added Shin.
While acknowledging the presence of bad actors, Shin draws a clear distinction between legitimate projects like Mantra and fraudulent schemes. By lauding Mantra’s commitment to regulatory compliance and governance, as evidenced by their desire to be regulated and their engagement with legal counsel, the investor signals confidence in the team’s ability to uphold integrity and mitigate risks.
Additionally, Shin underscored the significance of experience and expertise in navigating the complex regulatory landscape, suggesting that Mantra’s team, with its background in both traditional finance and crypto, is well-positioned to navigate these challenges effectively.
Speaking of their plans, Mullin added, “Furthermore, our emphasis on innovation extends beyond technical considerations to encompass user experience and accessibility. Through intuitive interfaces and streamlined onboarding processes, we aim to democratise access to DeFi while ensuring compliance with regulatory standards. In essence, our blockchain represents a paradigm shift in the DeFi landscape, offering a secure, scalable, and user-centric platform for the next generation of decentralised finance.”
