Mantra Unveils $108M Fund to Support Real-World Asset Tokenization and DeFi Projects

In a significant move to accelerate the growth of tokenized real-world assets (RWAs) and decentralized finance (DeFi), the Mantra blockchain network has unveiled a new $108,888,888 fund. The fund, known as the Mantra Ecosystem Fund (MEF), is designed to support startups building projects on Mantra’s Layer-1 blockchain, which focuses on RWA tokenization.

Mantra’s initiative comes at a time when investor interest in asset-backed digital products is on the rise. The global economic uncertainty, exacerbated by the potential impact of US President Donald Trump’s tariff announcements, has created a growing demand for stable, tokenized assets that can hedge against market volatility.

According to an April 7 announcement, the MEF will operate with an “open-arms policy,” welcoming projects at all stages of development. The fund will focus on RWA and DeFi applications, as well as complementary infrastructure projects. Mantra CEO, John Patrick Mullin, emphasized that the fund’s thesis is to invest in high-potential teams and projects that can support and expand the broader ecosystem.

Source: Mantra

The fund will be deployed over the next four years, with capital sourced from a network of institutional partners, including Laser Digital, Shorooq, Brevan Howard Digital, Valor Capital, Three Point Capital, and Amber Group. The backing from such high-profile institutions underscores the confidence and growing institutional interest in RWAs and DeFi.

RWA global market dashboard. Source: RWA.xyz

Mantra aims to become the underlying infrastructure for tokenized asset issuance worldwide. This strategy is further solidified by the company’s recent achievement: becoming the first DeFi platform to secure a virtual asset service provider (VASP) license under Dubai’s Virtual Assets Regulatory Authority (VARA).

The timing of the fund’s launch is strategic. As investor demand for RWAs continues to grow, the market capitalization of tokenized RWAs recently surged to a record $19.6 billion, up from $17 billion in February. Analysts predict that this market could reach $50 billion by 2025. BlackRock, the world’s largest asset manager, has also signaled its support for the RWA space, with its USD Institutional Digital Liquidity Fund (BUIDL) experiencing a three-fold increase in value from $615 million to $1.87 billion in just three weeks leading up to March 26.

BlackRock BUIDL capital deployed by chain. Source: Token Terminal, Leon Waidmann

With the launch of the MEF, Mantra is positioning itself to be a central player in the RWA and DeFi sectors, providing the infrastructure and support needed for innovative projects to thrive in the evolving digital asset landscape.