Mantra Launches $108 Million Fund to Support Asset Tokenization and DeFi Projects
Mantra blockchain network has established a $108,888,888 ecosystem fund focused on advancing startups in real-world asset (RWA) tokenization and decentralized finance (DeFi). The announcement came on April 7 amid growing demand for stable, asset-backed digital products in the cryptocurrency market.
The Mantra Ecosystem Fund (MEF) will deploy capital over the next four years to blockchain projects worldwide. The fund has attracted backing from major institutional partners including Laser Digital, Shorooq, Brevan Howard Digital, Valor Capital, Three Point Capital, and Amber Group.
John Patrick Mullin, CEO of Mantra, stated the fund will maintain an "open-arms policy" for projects at any stage of development. The focus will be global with special attention to RWAs and DeFi applications. Investment opportunities will be sourced through Mantra's network of partners.
"The MEF thesis is to invest in top-tier teams building RWA and DeFi applications, as well as complimentary infrastructure, that will both directly and indirectly support the broader ecosystem," Mullin told Cointelegraph. The company aims to become the underlying infrastructure layer for tokenized asset issuers worldwide.
The fund launch follows Mantra's achievement as the first DeFi platform to receive a virtual asset service provider (VASP) license under Dubai's Virtual Assets Regulatory Authority (VARA) just a month ago. This regulatory approval adds credibility to their expansion efforts.
The timing aligns with increasing institutional interest in RWAs, which some view as protection against crypto market volatility and economic uncertainty. The RWA market has shown strong growth despite broader market concerns related to US tariffs. Key metrics include:
- Total RWA market capitalization reached over $19.6 billion in early April
- Up from $17 billion in early February
- Industry experts predict RWAs could hit $50 billion before the end of 2025
- BlackRock's USD Institutional Digital Liquidity Fund grew from $615 million to $1.87 billion in just three weeks
Global economic concerns, including uncertainty around US tariff policies, have affected investor sentiment across markets, potentially driving more interest toward asset-backed digital products.
