The bustling city of Dubai recently played host to the Token2049 event, where Rifad Mahasneh, CEO of OKX’s Middle East and North Africa division, delivered a cautionary message to the crypto industry. As the fervor around tokenizing real-world assets (RWAs) continues to swell, Mahasneh urged stakeholders to focus on tangible utility rather than mere hype-driven growth. His comments shine a light on a rapidly evolving sector that is transforming how assets are perceived and traded in the digital age.
Tokenization Takes Center Stage in the UAE
The UAE is emerging as a powerhouse in the RWA tokenization arena. On May 1, a staggering $3 billion deal was inked between the MultiBank Group, UAE real estate juggernaut MAG, and blockchain infrastructure provider Mavryk. This marks the largest RWA initiative globally to date, underscoring the region’s ambitious strides in integrating blockchain with traditional asset classes. For more on this groundbreaking deal, see our detailed coverage. Moreover, the Dubai Land Department, in collaboration with the Virtual Assets Regulatory Authority, has embarked on a pilot project to tokenize real estate, setting the stage for a new era of property transactions.
Amid these developments, Mahasneh’s words carry weight. “In some cases, we’re tokenizing things that don’t need tokenization,” he remarked in an exclusive interview with Cointelegraph. “But in others, we’re bringing real, everyday value.” He emphasized the importance of clear regulatory frameworks, which he believes are pivotal in attracting large institutions to the crypto and tokenization space.
Stablecoins: A Bedrock for Institutional Confidence
The UAE is not only making waves with RWAs but also with its regulatory advances in the stablecoin sector. The Central Bank of the UAE’s approval of a regulatory framework for stablecoin licensing in June 2024 provided much-needed clarity. This move has bolstered confidence among investors and institutions, with Mahasneh highlighting the significance of such regulatory milestones. “For an investor, you want to know that your stablecoin is regulated,” he noted, pointing to the UAE’s proactive stance compared to other jurisdictions still mired in debate.
The response from the market has been swift. Tether, a major player in the stablecoin arena, has introduced a dirham-pegged stablecoin. Additionally, a consortium of heavyweight institutions, including Abu Dhabi’s sovereign wealth fund and First Abu Dhabi Bank, has signaled its intention to launch a similar product, pending regulatory green light. This follows Tether’s strategic moves, as detailed in our report on Tether’s acquisition of a stake in Adecoagro.
Balancing Hype and Reality
Despite the buzz, the RWA tokenization landscape is not without its pitfalls. Earlier this year, the Mantra project, which had secured a $1 billion deal with the Damac Group to tokenize its assets, experienced a catastrophic token collapse. This incident wiped out billions in market capitalization—a stark reminder of the volatility and risks inherent in the nascent market.
Mahasneh’s insights resonate with the broader industry discourse, raising questions about the sustainability of current trends. Will the momentum continue unabated, or are we on the cusp of a reality check? As regulatory environments evolve and technological capabilities expand, the balance between innovation and practical utility remains delicate.
The conversation around asset tokenization is far from over. As we move further into 2025, the world will be watching how the UAE and other pioneering regions navigate the complexities of integrating blockchain with tangible assets. The promise is enormous, but so too are the challenges. The ultimate test will be whether these initiatives can deliver real-world benefits that extend beyond transient market hype.
Source
This article is based on: OKX exec warns against hype amid real-world asset tokenization boom
Further Reading
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- Visa and Baanx Launch USDC Stablecoin Payment Cards
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
