In a significant move towards spearheading the next wave of blockchain development, MANTRA has set up an ecosystem fund to propel projects centered around real-world asset (RWA) tokenization and decentralized finance (DeFi). The move comes as institutional demand for RWAs increases with their market capitalization reaching over $19.6 billion in early April.

Open-door funding model for Web3 innovators

The MANTRA blockchain network has set up a $108,888,888 ecosystem fund to support the development of real-world asset (RWA) tokenization and decentralized finance (DeFi) projects. This new fund is an important aspect of MANTRA’s strategy to accelerate innovation and support firms built on its blockchain, which specializes in converting real-world assets into digital tokens to provide more solid cryptocurrency solutions.

In a post on X, MANTRA posted that the MEF will fund RWA tokenization projects of any scale, including chain-independent ones. The fund also aims to bring blockchain creators together with top investment houses to drive the take-up of RWA tokenization and DeFi.

MANTRA, in its April 7 announcement, said the fund will have an “open-arms policy,” taking on projects at any stage of development.  CEO John Patrick Mullin highlighted the firm’s focus on backing high-quality teams building RWA and DeFi solutions, as well as the infrastructure needed to enhance the broader blockchain ecosystem.

The MEF will be investing in high-quality teams building DeFi and RWA applications, along with supporting infrastructure that is advantageous to the broader blockchain ecosystem. Mantra CEO John Patrick Mullin told Cointelegraph in a statement that:

“The MEF thesis is to invest in top-tier teams building RWA and DeFi applications, as well as complementary infrastructure, that will both directly and indirectly support the broader ecosystem.”

Gideon Daitz, a partner at Three Point Capital and CEO of the MANTRA Ecosystem Fund (MEF), said the fund exists to speed up the tokenization of RWA around the world by giving teams access to funds, networks, and guidance to migrate high-quality assets onto the blockchain. Although the vision is to create the MANTRA ecosystem, he emphasized a collaborative, non-zero-sum strategy, believing that cooperation and openness will help both the community and the industry as a whole.

Institutional backing and regulatory credibility

The MANTRA Ecosystem Fund (MEF) has been backed by major institutional investors, reflecting growing confidence in blockchain infrastructure based on real-world assets. Laser Digital (a subsidiary of Nomura), Brevan Howard Digital, Shorooq Partners, Valor Capital, Three Point Capital, and Amber Group are some of the firm’s leading supporters.

In addition to financial support, MANTRA has enhanced its regulatory standing by receiving a Virtual Asset Service Provider (VASP) license from the Virtual Assets Regulatory Authority (VARA) in Dubai. This allows MANTRA to offer exchange, broker-dealer, and investment management services for virtual assets within a regulated environment, solidifying the initiative as a hub for compliance around digital asset innovation in the Middle East and beyond.

Conclusion

MANTRA’s $108 million fund is not only an investment in dollars; it’s a plan to bridge the physical assets with the universe of decentralized finance. MANTRA is gearing itself up as an industry leader in finance by helping early-stage companies and creating the necessary infrastructure. As institutions and governments begin to embrace tokenization, initiatives such as the MEF can become crucial agents in shaping blockchain-based asset management in the future, rendering real-world implementation a central pillar of the next digital finance wave.