Why Real World Assets Need a Purpose-Built Layer 1 - TOKEN2049 Singapore 2024

hey everyone how's it going John Patrick Mullen uh JPM CEO and co-founder of Mantra uh today as I mentioned as you mentioned we're going to be talking about why does real word assets need a purpose-built layer one solution so first off I actually have a question for you guys who here has heard of the term rwa show of hands okay a few people who likes the term rwa because I think it actually sucks real word assets is not a good term and trafy rwa means risk weighted asset right so we need to find a new moniker for for this but we're stuck with it for today the second question I have is who has heard of Mantra before a few okay I know you guys work with us so I know you guys know so who has heard of the token oh has anyone hold oh in the audience a few okay hopefully a few more after this I heard at the last uh stage over there that Arthur Hayes said that you needed to short the hell out of all rwa tokens so we're going to try to miss spell take that and and say that's not really what we're trying to do here and there's a few reasons why so we believe fully that existing chains cannot support rwas Raul Paula said there's no point in pushing tokenization of all assets when we don't even have a blockchain that can support it and there's a few reasons of that one is lack of specialization you know most of these general purpose chains support defi they support metaverse they support gaming um but they're not really meant for regulated asset classes like real word assets and as I mentioned there's no general purpose focus on compliance there's a lack of control of reboard assets and an example of this could be if you have tokenized a house um and then your metamask gets hacked or fished and you lose access to those keys do you actually lose the house that would be kind of ridiculous right you're homeless because your metamask account got fished absolutely not so you need to have some sort of control over these real word asset tokens and then of course then the lack of purpose build solution so that's what Mantra is trying to do we are rwa specialized we like to say that we're building for a which is a $6 trillion Niche for real world assets specifically we are focused on assets organization and we've built a technical solution to support this we're building it for compliance first um we're in the process of getting licensed in in in different jurisdictions and we really believe fully that it's important to abide and adhere to Regulatory Compliance as it pertains to real word assets so having an ability to understand and talk and work with Regulators around the globe it's very important that you have a chain that supports this functionality uh very clearly control as I mentioned is quite important we have a sovereign layer one solution so that we can if necessary um uphold and and and uh have control over transactions with our Sovereign validator set and finally because we are built on the cosmos SD it is a modular text deck and I'm going to go through a few of the different custom modules that we've built around identity compliance and permissioning so what are some of the core features of Mantra the first is a essentialized identity module and effectively what this is is like a soulbound nft concept where effectively you can connect your identity to your wallet I believe that in crypto people have this idea that kyc is bad and they don't like it but I actually disagree that people don't like doing kyc I think they don't like doing kyc many many times because honestly doing kyc a lot does suck but doing it once and then being able to access different products different platforms is not really that bad if you can only do it one time and that's this whole idea about an a decentralized identity module you do kyc and it becomes P portable it becomes portable within an onchain ecosystem for you to access dex's lending protocols and all different types of applications from one kyc and from one wallet we've also built an R tokenization module which is this idea about token control so effectively what this allows us to do is have different types of smart contract functionalities built in so developers can easily issue utility tokens security tokens real word asset tokens for all different types of asset classes and we'll talk a little bit more about what that does but it makes it very easy for both web 3 and web 2 developers to not have to worry about the compliance of their assets as are being issued and then finally this idea of a compliance SDK effectively this is a permissioning module that allows a customizable governance framework for developers to say who can interact with what asset when where and how right so what this means is when you're building onchain uh applications or daps it's very very hard to manage when you're having a totally permissionless uh ecosystem about who can interact with a product who can interact with your dap this can mean that you have you know uh uh you know sanctioned individuals um you know people who are not supposed to be on on on your platform interacting with assets for example myself I'm American we're not really supposed to be anywhere which kind of sucks but um you can actually create a very customizable rule framework that says okay no Americans no Narco narcot traffickers um but we're allowed to have you know hopefully all these people in the audience on the on the platform that could be the rules set you create We Believe actually not only we I think a lot of people believe that real word assets are a multi-trillion dollar opportunity BCG has said that by 2030 they forecast up to $6 trillion of assets will be tokenized if you're looking at today's market um right now we have roughly I think 2 billion of tokenized uh treasury products on permissionless blockchains that's a drop in the ocean right we're not even really scratching the surface of the potential of this opportunity in the potential of this industry we believe that basically any type of asset can be tokenized that doesn't necessarily mean that every asset should be tokenized right in the end of the day you have to think about what is the value ad both for the issuer as well as for the end user so we're looking at this across any different types of uh uh asset verticals real estate Commodities uh debt art whiskey watches any type of thing funds that being said we are heavily focused on three verticals where we're seeing the most traction one would be real estate we're doing some really interesting stuff particularly in Dubai um for Real Estate tokenization projects there another one would be funds and more financial products so private Equity private credit money markets these type of products and then the third one that we're really excited excited about is also IP so IP and content whether that's tokenizing royalties or cash flows from your favorite artist your favorite football team or or basketball team uh these are interesting ways that you can actually engage with your fans uh via IP tokenization not just at a utility level but at a financial level so we believe Mantra is the home for rwas we're launching our main net next month which we're very very excited about um and we want to be The Ledger of record for rwas I think it's incredibly important then we're talking about real Road assets your lishing a trusted point we call it a shelling point for real assets to come on chain so you know that the provenance is real and the provenance is true but we're not just building a layer one solution we're also building a whole encompassing ecosystem so it's incredibly important to you know not just focus on the actual technical components of real world assets but actually the distribution because Frankly Speaking creating a token uh and calling it in rwa is quite easy and frankly that's really kind of what we need to do is actually work on distribu tion of these assets creating secondary Market liquidity back in 2018 2019 rwas were called stos right it was just a different flavor um but that didn't really take off and it didn't take off for a number of reasons there was no access to retail there was no secondary Market liquidity and really there was no you know ecosystem around these products so it's really important for us to actually have a licensed secondary Market venue for these things to be able to trade on and that's Omega Omega is a DEX as well as a central liement order Book Exchange fully self custodial for real word assets as well as crypto assets we're getting a licensed or in the process of getting licensed by Vara which is the virtual asset regulatory Authority in Dubai which will allow us to help facilitate secondary Market liquidity of these assets and this really is a very big important part of real word assets because without secondary Market liquidity without trading um venues there really is no reason to just bring these assets on chain we're seeing real word assets in three phases the first phase is supply side so bringing all these different products on chain ideally very high quality ones phase two is the secondary Market liquidity idea where do these things trade how do you buy them on the secondary Market is there any liquidity for them and then phase three is more about composability composability is how do you use them in defi how do you use these things cross chain can you use them as margin and collateral other types of things this is a multi-year journey but you know we believe that we're positioned to be at the Forefront of that and we do have a significant ability to Source very high quality rwas we're partnered with Ando Finance which is one of our one of the other you know major rwa projects um for their tokenized treasury product usdy currently there's a a vault product live on our on our uh website that you can check out if you're interested in getting exposure to us treasuries Ono tokens as well as M some of these other deals that we working on include mag mag is a multi-billion dollar real estate conglomerate in the UAE in Dubai uh we're tokenizing $500 million of real estate for an Off plan real estate development where you can participate both in the financing of this development and then actually transition uh your your your your investment into the equity ownership at a discounted rate novice Aviation capital is a very interesting one uh we're actually tokenizing the the the fund that facilitates aircraft financing and leasing including you know boeings and air uh air buses to Major uh aircraft uh Airlines such as Singapore Airlines Emirates etad Etc so we have a massive ecosystem mantra's been around for four years um I think many people in the audience have have have hopefully heard of us um but we're building ecosystem across uh daps validator centralized exchanges um and obviously really uh happy to have a number of really strong institutional investors on board including sharuk Partners which is a middle eastern fund backed by nine of the world's largest Sovereign wealth funds in the world um laser digital um and others we have a very strong Community we've launched three test Nets already actually so the second test net which is called hung byai um had over 5 million participants uh we launched that back in April at the other token 249 in Dubai um and we more recently launched the dukong test net so you can see why we're calling it Hong byai and dukong it's because of our presence and focus on the Middle East in Asia I'm normally based in Hong Kong but we have a very large presence in Dubai hence Hong by uh and du Kong so as I mentioned before we do have this chakra pool which is effective this Vault product where you can participate and earn yield from us treasuries which is effectively the risk-free rate of the US government currently around 5% Additionally you can incentivize in Ono tokens as well as om tokens and I think not Financial advice always do your own research but the last I checked I think it had a roughly 500% apy so check it out and figure out if you want to participate or not effectively what happens is when you participate you can participate on ethereum or base you invest and then you'll get usdy tokens on Main net uh next month as well as the additional rewards so as I mentioned mainnet is coming next month which is October we're calling it omt toer um this is basically the month that we're going all out for a number of different initiatives mainnet is just the foundation so really it's important that for us the main is the first step in actually bringing real world assets to the masses and you need a foundational layer one that supports both of the technical level as well as the secondary Market distribution level for real world assets to actually become a thing you know we've all had this promise and this idea that you know RW and and real world assets are going to change the world and we do believe that in in time the the amount of reconized assets on chain will actually surpass the whole entire crypto Market which is I think $2 trillion or so today but if you think about it real estate Equity debt these are multi- trillion dollar asset classes and eventually they are going to be living on chain today in the permissionless uh you know retail environment we really haven't had that much traction I could argue that at the institutional level JP Morgan for example they've done over a trillion dollars of uh tokenized asset transfers on their permissioned public blockchain or sorry the permissioned blockchain on onx but the world needs a layer one solution that is permissionless and accessible to all of us because we are not ever going to participate on the JP Morgan Onyx blockchain but hopefully you can participate on Mantra so hopefully you learned a little bit about rbas today if you have any more questions you can check us out on our website um main. um and hopefully we can become that layer one solution for you to build any of your real word asset use cases uh tomorrow thank you very much for your time and uh if you have any questions we'll be over there thank you