Crypto Industry Urged to Prioritize Real-World Utility Amid Tokenization Surge

According to Cointelegraph, the CEO of OKX's Middle East and North Africa (MENA) division, Rifad Mahasneh, has emphasized the importance of delivering tangible benefits within the crypto industry as interest in real-world asset (RWA) tokenization continues to grow. Speaking at the Token20249 event in Dubai, Mahasneh highlighted the need for projects to clearly demonstrate the advantages of tokenizing specific assets, warning against tokenizing assets that do not require it. He noted that while tokenization holds promise, the focus should be on projects that provide real, everyday value. Mahasneh's remarks come at a time when RWA tokenization projects are gaining momentum in the Middle East, particularly in the United Arab Emirates. On May 1, MultiBank Group entered into a $3 billion RWA agreement with UAE-based real estate firm MAG and blockchain infrastructure provider Mavryk, marking the largest RWA initiative globally to date. Additionally, the UAE government has embarked on its own RWA tokenization efforts. On March 19, the Dubai Land Department announced a pilot phase for its real estate tokenization project, collaborating with Dubai's Virtual Assets Regulatory Authority (VARA). The region's regulatory clarity is driving institutional interest in tokenization and crypto, according to Mahasneh. He explained that clear regulations enable industry players to understand the governance of key entities like exchanges by consulting the rulebooks established by regulators. Furthermore, Mahasneh commended the UAE's progress in stablecoin regulations. In June 2024, the Central Bank of the UAE approved a regulatory framework for stablecoin licensing, providing clarity on the issuance, supervision, and licensing of dirham-backed payment tokens. This regulatory advancement, he noted, instills confidence in institutions considering entering the crypto space. The UAE's proactive approach to crypto regulation has attracted major players like Tether, which has joined the race to issue a dirham-pegged stablecoin. On April 29, several institutions, including Abu Dhabi's sovereign wealth fund, the Abu Dhabi Developmental Holding Company (ADQ), First Abu Dhabi Bank, and the International Holding Company, partnered to launch a dirham-pegged stablecoin, pending regulatory approval. Mahasneh highlighted the significance of having regulated stablecoins, stating that it is a major advantage for investors seeking assurance in their investments.