Why real world asset tokenization is the next big

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Mantra CEO discusses the importance of compliance and an easy investment process.

Scott Melker
Jun 18, 2024 2:53 PM EDT

The convergence of institutional interest and blockchain technology is creating a pivotal shift in the financial landscape. In a recent conversation, Scott Melker, host of The Wolf of All Streets podcast, and John Patrick Mullen, CEO and co-founder of Mantra, discussed the burgeoning potential of real world assets (RWAs) within the crypto space.

Melker highlighted BlackRock and BlackRock CEO Larry Fink as important players in bringing RWAs to the public eye. “The real trigger for RWA coming into the forefront again was Larry Fink and BlackRock,” Melker said. He emphasized that while many focused on BlackRock’s bitcoin spot ETF (exchange-traded fund), Fink’s annual letter hinted at a broader ambition: tokenization.

Mullen echoed this sentiment. “Institutions are here,” Mullen said, referring to the billion-plus T-bills (treasury bills) already tokenized on public blockchains. He underscored the immense potential of RWAs, suggesting that current efforts are merely the "tip of the iceberg."

Melker compared Wall Street’s gradual shift to blockchain technology to the "death throes of the dinosaurs." He said that lengthy transaction times made blockchain, which is instantaneous, increasingly attractive. Mullen envisioned a future of 24/7 markets accessible globally, “from the palm of your hands.”

However, transitioning to a blockchain-based system isn’t without challenges. “Using blockchain effectively means disrupting the largest businesses in the world,” Melker pointed out. This disruption includes every intermediary in the financial sector, from credit card companies to stock exchanges.

Mullen acknowledged these impediments but remained optimistic about the long-term strategy. “We’re literally creating a new market for on-chain tokenized assets,” he said. He highlighted the importance of compliance and seamless investment processes, emphasizing that while the market doesn’t fully exist yet, the potential is vast.

A significant part of this transformation involves understanding the token as a product. “The token is a product,” Mullen explained, stressing the importance of community support and responsible management.

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