In the most recent installment of Cointelegraph’s podcast, “Hashing It Out,” host Elisha Owusu Akyaw invites John Mullin, the CEO of Mantra Chain, to delve into the topic of real-world asset (RWA) tokenization. Mullin provides a detailed analysis of the buzz surrounding this concept, explores the potential benefits for investors, and discusses the challenges faced by this emerging technology.
Mullin begins by explaining the implications of tokenization for the adoption of Web3 and its capacity to attract institutional investments. He also sheds light on the current state of regulations in the RWA space and how this impacts Web3 projects.
The CEO notes that the hype surrounding real-world assets is not a new phenomenon in the blockchain industry and draws parallels with the popularity of security token offerings (STOs) during the 2018-2019 period. Mullin attributes the increased interest in RWA tokenization to growing institutional involvement and the development of innovative solutions to address regulatory obstacles that previously hindered the STO sector.
However, Mullin takes a nuanced stance on whether all assets should be tokenized. He clarifies that while it is technically possible to tokenize almost anything, the crucial factor lies in whether the token grants real-world rights. To create a genuinely transferrable token, projects must integrate technology and token creation with real-world ownership, corporate actions, and legal status. This enables projects to replicate and confer the transferrable rights of the real-world asset in token form.
Mullin acknowledges the challenges posed by this task, emphasizing that each asset class is subject to different real-world rules that vary across jurisdictions. Consequently, projects must consider various factors depending on their operating location, making this industry and product suite both challenging and rewarding.
Furthermore, Mullin predicts that the tokenization of real-world assets will attract more institutional interest than the sector has seen before. He highlights that RWA tokenization offers institutions the opportunity to invest on-chain without having to navigate unfamiliar and volatile assets, such as those found in decentralized finance.
For more insights from John Mullin, listeners can tune in to the full episode of “Hashing It Out” on popular podcast platforms like Spotify, Apple Podcasts, and TuneIn. Additionally, interested individuals can explore Cointelegraph’s extensive collection of Web3 podcasts.