A new ecosystem fund worth $108,888,888 has been initiated by the Mantra blockchain network, designed to bolster the development of startups dedicated to the tokenization of real-world assets (RWAs) and decentralized finance (DeFi). This move comes in response to the increasing demand for stable, asset-backed digital solutions.
As a layer-1 blockchain tailored for tokenized RWAs, Mantra has launched this fund, referred to as the Mantra Ecosystem Fund (MEF), to foster the growth and adoption of projects and startups on its platform, as detailed in an announcement from April 7.
The initiative aims to allocate funds over the next four years to promising blockchain ventures globally, with investment opportunities connected through Mantra’s network of collaborators. Among its supporters are several institutional partners, including Laser Digital, Shorooq, Brevan Howard Digital, Valor Capital, Three Point Capital, and Amber Group.
The CEO of Mantra, John Patrick Mullin, stated that the fund will have an “open-arms policy,” welcoming projects in any phase of development from around the world, with a keen interest in RWAs and DeFi. Mullin elaborated:
“The thesis for MEF is to invest in top-tier teams creating RWA and DeFi applications, alongside complementary infrastructures, which will support the broader ecosystem both directly and indirectly.”
Mullin expressed that Mantra’s goal is to establish itself as the foundational infrastructure layer for the issuance of tokenized assets on a global scale.
The timing of the fund’s launch is particularly significant, following Mantra’s recent achievement of becoming the first DeFi platform to secure a virtual asset service provider (VASP) license from Dubai’s Virtual Assets Regulatory Authority (VARA).
Rising Interest in RWAs
The introduction of this fund coincides with a surge in institutional interest in RWAs. Many view these assets as a safeguard against the volatility of the cryptocurrency market and ongoing economic uncertainties.
Investor sentiment across various markets has been affected by global concerns and uncertainties surrounding tariffs imposed by former US President Donald Trump.
Despite a general downturn in the market tied to these tariff concerns, the value of tokenized RWAs has recently surged to a record high. Data from RWA.xyz indicates that the total market capitalization of RWAs exceeded $19.6 billion by early April, rising from $17 billion at the start of February.
Experts have previously noted that the lack of upward movement in Bitcoin’s price could propel RWAs to reach an all-time high of $50 billion before the close of 2025. Furthermore, BlackRock, the world’s largest asset management firm, has shown support for the RWA sector.
BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) experienced a dramatic increase, growing from $615 million to $1.87 billion over a three-week period leading up to March 26.
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