From cointelegraph by Ezra Reguerra

Decentralized finance and real-world asset tokenization platform Mantra Finance has received a virtual asset service provider (VASP) license from Dubai’s Virtual Assets Regulatory Authority (VARA), allowing it to expand operations in the United Arab Emirates and the broader Middle East and North Africa (MENA) region.

On Feb. 19, Mantra Finance announced that it secured a VASP license from VARA to operate as a digital asset exchange and provide broker-dealer, management and investment services. 

Dubai and the UAE have positioned themselves as leading hubs for cryptocurrency, drawing digital asset companies with structured regulatory frameworks. Mantra CEO John Patrick Mullin said Dubai and VARA have become leaders in digital asset regulations.

He told Cointelegraph that “by establishing the most timely, comprehensive and built from-the-ground-up framework for virtual assets and Web3, Dubai and VARA have become world leaders in crypto regulation.”

“This license was a crucial step for Mantra and a key step in our journey toward global expansion,” he added. 

Mullin said the UAE and the MENA region have created a thriving Web3 ecosystem thanks to regulatory clarity. He added that with the license, the company could deliver decentralized finance products that bridge the gap between DeFi and traditional finance. 

With its VARA license, Mantra plans to offer financial services to institutional clients and qualified investors in the UAE. 

Opening up real-world asset tokenization to institutional investors

Mullin told Cointelegraph that the license will allow Mantra to accelerate the building of regulatory-compliant financial products to enhance their existing ecosystem. 

He said the next phase, which he described as the “real rollout of RWAs,” will be driven by regulation:

“This point was brought home strongly last year by the huge inflows to Crypto ETFs when the relevant rulings and approvals came through. Regulation brings institutional adoption.”

When asked if retail investors would have access to tokenization products, the executive explained that it would focus primarily on institutional investors embarking on tokenization projects at scale. However, Mullin added that Mantra would ensure that retail investors can access these opportunities in the future. 

He noted that while tokenization reduces barriers to entry, Mantra will ensure compliance and investor protection while expanding accessibility.