MultiBank, MAG and Mavryk: world record $3B token

United Arab Emirates (UAE) real estate giant MAG and blockchain infrastructure company Mavryk have signed a record $3bn real-world asset tokenization (RWA) deal with Dubai-based MultiBank Group, the world's largest financial derivatives organisation.

The deal marks the imminent launch of MultiBank's native utility token (MBG) and represents the largest RWA tokenization project globally to date.

Through this agreement, MAG's luxury real estate projects - including Creekside at Dubai, The Ritz-Carlton Residences and Keturah Reserve - will be made available on the blockchain via MultiBank.io's regulated RWA marketplace.

Once tokenized, these assets will be accessible to investors worldwide, and owners will receive daily revenue directly from the platform.

Talal Mofaq Al Ghaddah, senior executive vice president of MAG, said: 'MAG's $3bn in real estate will be tokenized as individual RWA tokens on the MultiBank platform, each represented on the Mavryk blockchain as underlying Layer 1 infrastructure."

Al Ghaddah added: "The token MBG offers utilities within the ecosystem, such as transaction discounts, early access to real estate and a deflationary buyback and burn model."

MultiBank tokenizes MAG's real estate assets

MAG, one of the UAE's best-known real estate developers, will enable the tokenization of its premium properties.

MultiBank Group will oversee governance, liquidity and compliance, with the MBG token at the core; Mavryk will handle blockchain issuance and DeFi integration.

"MultiBank's tokenized assets will have a dual function. They will be able to serve as collateral for derivatives within the MultiBank group, creating a smooth transition between tokenised assets and traditional finance," Al Ghaddah explained.

According to him, tokens will integrate well into the DeFi's broader Mavryk ecosystem.

The MBG token adds utility to the platform

The MBG token will enable staking, commission payments, VIP levels and user rewards. It will also feature a buyback and burn mechanism tied to the platform's revenues, creating long-term value for institutional and retail investors.

Thanks to tokenized assets, the platform aims to grow from the current $3 billion to $10 billion.

According to the platform's description, "the goal is to tokenize high-value, income-producing real estate assets that have traditionally been difficult to acquire or sell."

The announcement comes at a time of renewed interest in tokenizing RWAs.

On 30 April, BlackRock submitted an application to generate shares in one of its money market funds on a platform based on distributed ledger technology (DLT). The platform would use the blockchain to maintain a mirrored register of unit ownership for investors.

The BLF Treasury Trust Fund (TTTXX), offered exclusively by BlackRock Advisors and The Bank of New York Mellon (BNY), would be tracked via these DLT units.

Almost all of the $150m in assets held by the money fund are cash and US Treasury securities.