In the most recent edition of Cointelegraph’s podcast, Hashing It Out, host Elisha Owusu Akyaw interviews John Mullin, the CEO of Mantra Chain, to delve into the world of real-world asset (RWA) tokenization. Mullin breaks down the hype surrounding this emerging technology, explores its potential for investors, and discusses the challenges faced by the industry.
Mullin explains the implications of tokenization for Web3 adoption and its ability to attract institutional investments. He also sheds light on the current regulatory landscape in the RWA space and its impact on Web3 projects.
The CEO emphasizes that the hype surrounding real-world assets is not new in the blockchain industry and draws parallels to the popularity of security token offerings (STOs) during the 2018-2019 cycle. However, Mullin believes that RWA tokenization is gaining momentum due to increased interest from institutions and the ability of projects to navigate regulatory obstacles that previously hindered the STO sector.
Mullin takes a nuanced approach to the question of whether everything should be tokenized. He explains that while almost anything can be tokenized, the key issue is whether that token grants real-world rights. To create a truly transferable token, projects must integrate technology and token creation with real-world ownership, corporate actions, and legal status. This allows projects to mirror and confer the transferable rights of the real-world product in token form.
However, Mullin acknowledges that this is a challenging task as different asset classes have varying real-world rules that differ from jurisdiction to jurisdiction. Depending on the project’s location, it must consider different factors, making it a challenging yet rewarding industry and product suite.
Mullin predicts that the tokenization of real-world assets will attract significant institutional interest, surpassing what the industry has experienced thus far. He believes that RWA tokenization offers institutions the opportunity to invest on-chain without having to deal with unfamiliar and volatile assets, such as those found in decentralized finance.
To hear more insights from John Mullin, listen to the full episode of Hashing It Out on popular platforms like Spotify, Apple Podcasts, or TuneIn. Don’t forget to explore Cointelegraph’s extensive catalog of Web3 podcasts.