Mantra Finance Secures Dubai Crypto License to Expand DeFi and RWA Tokenization Services

Mantra Finance, a leading decentralized finance (DeFi) platform focused on real-world asset (RWA) tokenization, has secured a Virtual Asset Service Provider (VASP) license from Dubai’s Virtual Assets Regulatory Authority (VARA). This new license will enable the company to extend its operations and offer innovative financial products to institutional investors across the UAE and the broader Middle East and North Africa (MENA) region.

A Milestone for Mantra Finance

Announced on February 19, 2025, Mantra’s acquisition of the VASP license marks a significant milestone in the company’s global expansion plans. With the license in hand, Mantra is now authorized to operate as a digital asset exchange, offering broker-dealer, management, and investment services in the UAE. This development comes as Dubai continues to solidify its position as a global hub for digital assets, attracting blockchain and cryptocurrency companies through its progressive regulatory framework.

John Patrick Mullin, CEO of Mantra Finance, expressed excitement about the new license, emphasizing that Dubai and VARA have become pioneers in establishing regulatory clarity for the crypto industry. He noted, “By establishing the most timely, comprehensive, and from-the-ground-up framework for virtual assets and Web3, Dubai and VARA have become world leaders in crypto regulation.”

“This license was a crucial step for Mantra and a key step in our journey toward global expansion,” Mullin added, reflecting the significance of this achievement in the company’s long-term goals.

Bridging DeFi and Traditional Finance

With its newly granted license, Mantra plans to broaden its DeFi offerings and expand access to tokenized real-world assets (RWAs) for institutional investors in the UAE. Mullin highlighted that the regulatory clarity provided by Dubai and VARA has cultivated a thriving Web3 ecosystem in the region, allowing Mantra to offer decentralized financial products that seamlessly connect DeFi with traditional financial services.

Mantra aims to focus on institutional clients and qualified investors who wish to engage in tokenization projects at scale. Although the company is primarily targeting the institutional market at this stage, Mullin emphasized that retail investors would eventually be able to access tokenization opportunities as well. He explained that while tokenization lowers barriers to entry, the company is committed to ensuring compliance and investor protection throughout its expansion.

Accelerating Real-World Asset Tokenization

The VASP license will help Mantra accelerate the development of regulatory-compliant financial products, enhancing its existing ecosystem and enabling the "real rollout of RWAs." According to Mullin, the importance of regulation in driving institutional adoption was made clear by the surge in interest surrounding Crypto ETFs, which saw significant inflows once relevant rulings and approvals were in place.

“We’ll be focusing on tokenization projects at scale for institutional investors, but we will make sure that retail investors can access these opportunities in the future,” Mullin shared, underlining the company's long-term vision of democratizing access to tokenized assets.

Mantra is already collaborating with prominent institutions and companies in the UAE, including Damac, Libre, MAG, Novus Aviation, and Zand, to bring billions of dollars' worth of assets onchain. Mullin also teased upcoming developments, saying, “By the end of this quarter, and into the next, we’ll be sharing updates on new projects we are working on that will tokenize assets across multiple industries, markets, and classes.”

VARA's Regulatory Oversight

Dubai’s regulatory framework has been instrumental in creating a secure environment for digital asset companies. VARA, the UAE’s cryptocurrency regulator, has strengthened its oversight in recent months, tightening rules around crypto marketing and cracking down on unlicensed firms. In 2024, VARA required digital asset investment promotions to include clear disclaimers about the volatility of crypto assets, aiming to protect consumers and promote transparency in the market.

VARA has also been actively enforcing its rules, issuing fines and cease-and-desist orders to several businesses that failed to comply with its marketing regulations. In October 2024, the regulator fined seven companies for operating without proper licenses, with fines ranging from $13,000 to $27,000. These actions underline VARA’s commitment to fostering trust and responsibility within the crypto space.

Looking Ahead

Mantra’s VASP license in Dubai represents an exciting chapter in the company’s expansion and its goal to offer cutting-edge DeFi and RWA tokenization services to institutional investors. With regulatory clarity provided by VARA and continued collaboration with key partners in the MENA region, Mantra is poised to lead the way in bridging the gap between DeFi and traditional finance.

As the company works toward the tokenization of billions in assets and develops new projects across various industries, Mantra Finance is set to play a pivotal role in the evolution of digital finance in the UAE and beyond.