The Mantra blockchain network has launched a $108,888,888 ecosystem fund aimed at accelerating the growth of startups focused on real-world asset (RWA) tokenization and decentralized finance (DeFi), amid rising demand for stable, asset-backed digital products.
Mantra, a layer-1 (L1) blockchain built for tokenized RWAs, launched the Mantra Ecosystem Fund (MEF) to accelerate the growth and adoption of projects and startups building on its network, according to an April 7 announcement shared with Cointelegraph.
Mantra said it will deploy the capital over the next four years among โhigh-potential blockchain projectsโ worldwide, with investment opportunities sourced through Mantraโs network of partners. The fundโs backers include a wide range of institutional partners including Laser Digital, Shorooq, Brevan Howard Digital, Valor Capital, Three Point Capital and Amber Group.
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Mantra CEO John Patrick Mullin said the fund will operate an โopen-arms policy, welcoming projects at any developmental stage globally with a particular focus on RWAโs and DeFi.โ Mullin told Cointelegraph:
โThe MEF thesis is to invest in top-tier teams building RWA and DeFi applications, as well as complimentary infrastructure, that will both directly and indirectly support the broader ecosystem.โ
Mantra aims to become the underlying infrastructure layer for tokenized asset issues worldwide, Mullin said.
Source: Mantra
The launch of the fund comes a month after Mantra became the first DeFi platform to obtain a virtual asset service provider (VASP) license under Dubaiโs Virtual Assets Regulatory Authority (VARA).
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Investor demand grows for RWAs
The timing of the fundโs launch aligns with growing institutional interest in RWAs, which are seen by some as a hedge against crypto market volatility and broader economic uncertainty.
Global fears and uncertainty around US President Donald Trumpโs tariffs have impacted investor sentiment across markets.
Despite a broader market slump triggered by US tariff-related concerns, the value of tokenized RWAs recently surged to a record high. According to data from RWA.xyz, total RWA market capitalization reached more than $19.6 billion as of early April, up from $17 billion in early February.
RWA global market dashboard. Source: RWA.xyz
Industry watchers previously told Cointelegraph that Bitcoinโs lack of upside momentum may drive RWAs to a $50 billion all-time high before the end of 2025.
The worldโs largest asset manager, BlackRock, has also signaled support for the RWA space.
BlackRock BUIDL capital deployed by chain. Source: Token Terminal, Leon Waidmann
BlackRockโs USD Institutional Digital Liquidity Fund (BUIDL) saw an over three-fold increase in the three weeks leading up to March 26, from $615 million to $1.87 billion.
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