Exclusive Interview: Tokenization Perspective from BBW Dubai

Binance Blockchain Week 2024, held in Dubai, hosted important discussions on how blockchain technology is transforming the financial world.

Critical trends, especially the tokenization of real-world assets, came to the fore at the event. In this context, we met and had an interview with Ekin Gültepe, General Manager of Mena and Türkiye of Mantra, which works on the democratization of corporate finance with tokenization and blockchain technology.

Let’s start with the general picture of tokenization. There was a lot of talk here yesterday at today’s event. This seems to be one of the most important dynamics right now: the tokenization of real-world assets. How do you see the development process on this subject? What kind of opportunity is before us?

Tokenization of real-world assets will provide truly democratic volume to the financial world. Using Novus Blockchain technology, we can democratize traditional finance and reach wider audiences with more equal opportunities. This process can minimize brokerage commissions, increase liquidity and enable many more transactions. This will create a financial ecosystem where money can grow itself. We are currently in the first phase of this world. In the first place, large investors, that is, institutional investors, accept this technology. We can say that this acceptance process has been completed.

How do you observe this adaptation taking place?

To give an example, developments such as BlackRock’s tokenization steps, JP Morgan’s transfer of assets with its private blockchain infrastructure, and the prediction that tokenized assets will reach a volume of 16.1 trillion dollars in 2030, stated in the report published by Boston Consulting Group last year, show that this adaptation has occurred. It shows. Currently, stablecoins are the most adapted part of this process. Because people still trust the dollar and other foreign currencies. However, this will change over time. The ratio of different value categories within real-world assets will also transform.

We have been seeing a lot of projects on this subject lately. Many different assets are being tokenized, from agricultural products to shipping containers. Which assets will be accepted in the second phase? What kind of road map do you foresee?

This is a very good question. Because it is theoretically possible to tokenize all assets in the world with tokenization technology. But tokenizing everything is unrealistic. At this point, it is necessary to move forward with rational and attractive products. The most important issue of the second phase is liquidity and adaptation of individual users to this system. For example, Dubai’s real estate market is a great example. With tokenization technology, individuals can create a tokenized portfolio without having to purchase a full property with high budgets. For example, it becomes possible for a dentist to create a portfolio by purchasing pieces from a house with a sea view, a commercial office and other properties with a budget of 30 thousand dollars. Thus, users can easily access liquidity and earn regular income.

I think there are also examples like Pyse. What kind of opportunity does tokenization offer in such projects?

The Pyse example is a very nice model. This company produces electric motorcycles powered by renewable energy. There are already 200 Pyse motorcycles on the streets of Dubai and this number will increase. When you buy Pyse tokens, you are actually buying a part of this motorcycle group. This offers a nice alternative to private credit products in the traditional financial world. While Pyse provides investors with an annual income of 16%, it guarantees to get the main capital back at the end of the contract. Such projects demonstrate the importance of tokenizing real-world assets and making them available to a wider audience.

Mantra acts as a platform for assets to be tokenized. You are developing different tokenization projects on top of this system, is that correct?

Yes, absolutely true. As an infrastructure provider, Mantra enables the tokenization of projects. For example, we collaborated with the government on real estate tokenization in Dubai. In this process, the state’s strategic contribution to projects supported by blockchain technology plays a very important role. We also have projects in different areas such as renewable energy and aircraft financing. We are working on aircraft financing with Novus. We are also carrying out another tokenization project worth 500 million dollars.

You have recently started a formation in Turkey. What do you expect from the Turkish market?

Türkiye is one of the leading countries in the world with its young population, fintech and technology adaptation. Türkiye is a very strong market in terms of crypto adoption rate in the world. Regulations also play an important role here. With the expansion of regulations, a safer and more orderly trading environment will be created. Additionally, there is a qualified talent pool in Turkey. We regularly organize workshops in Turkey to expand the Mantra ecosystem. Entrepreneurs, software developers and anyone who wants to develop blockchain projects can attend these workshops.

Finally, what innovations await individual and corporate users in this process?

By tokenizing real-world assets, we are stepping into a more sustainable and high-quality financial world that minimizes intermediaries. Individual investors will be able to easily access global markets with small budgets. On the corporate side, tokenized assets will create a more efficient and transparent financial ecosystem.