MANTRA Secures VARA License to Expand DeFi and RWA Tokenization in UAE

Highlights:

• MANTRA secures VARA license to offer DeFi and RWA tokenization services in the UAE and MENA.
• MANTRA’s license allows it to offer financial products to institutional investors in the UAE area under existing regulations.
• Firms are attracted to Dubai’s crypto-friendly regulations that are strictly enforced to check against unauthorized operations.

MANTRA Finance FZE, a Decentralized Finance (DeFi) arm of the MANTRA Group, has secured a Virtual Asset Service Provider (VASP) license from the Dubai Virtual Asset Regulatory Authority (VARA). This license enables MANTRA to act as a virtual asset exchange where it will offer broker-dealer, management and investment services.

Beyond thrilled to share, we have successfully obtained the FIRST DeFi license from @varadubai to operate as a Virtual Asset Exchange, and offer  Broker-Dealer, Management and Investment Services. 

It’s a milestone not just for #MANTRA and a key step in our journey towards… pic.twitter.com/OJFw4n0Omr

— MANTRA Consensus 2025 HK (@MANTRA_Chain) February 19, 2025

As per the press release, such a move has been initiated at a time when Dubai is aiming to enhance its status as the world’s largest crypto hub. Due to this regulation, Dubai has become an ideal hub for blockchain platforms that seek to maintain compliance and expand. MANTRA’s license is in harmony with its plan to expand across the United Arab Emirates and other markets in the Middle East and North Africa (MENA).

VARA’s legal guidelines have been conservative yet dynamic, and that has accelerated the growth of this ecosystem in Dubai. In 2024, VARA put restrictions in place by requiring that digital asset promotions include disclaimers and aimed to fine those operating without licenses. These measures bring confidence and transparency to the virtual asset market.

Institutional Focus and Global Expansion

MANTRA’s license shows how the platform is preparing to unlock decentralized finance and RWA tokenization services within the regulated sphere. The company focuses on institutional investors in the UAE and MENA seeking to link to traditional finance and DeFi.

MANTRA’s Chief Executive Officer, John Patrick Mullin, noted that the approval was an achievement of the company’s expansion strategy. He noted that the legal framework of Dubai ensures that firms such as MANTRA can offer credible, transparent, and efficient financial products. Mullin highlighted the region’s role as a thriving Web3 ecosystem, supporting institutional adoption of tokenized assets. 

With the VARA license, MANTRA aims to bring improved speed and transparency from decentralized finance with traditional finance protections. These offerings are aimed at institutional clients and accredited investors. In addition, they aim to deliver efficient trade settlements and better inventory management.

MANTRA is partnering with leading UAE institutions such as Damac, Libre, MAG, Novus Aviation and Zand for tokenizing billions in assets. The firm anticipates the launch of projects by the end of this quarter, across different business sectors and markets.

Strengthening Compliance and Market Trust

The business environment in Dubai continues to be regulated but friendly. In late 2024, VARA fined several firms for violating marketing rules and conducting business without licenses. This crackdown underlines the necessity of compliance for such firms like MANTRA.

According to Mullin, regulatory certainty fosters institutional investments, citing the influx into crypto ETFs that came after approval last year. He noted that regulation has an important role in creating large-scale adoption of tokenized assets.

MANTRA’s license also enhances its reach by expanding its geographical target market and allowing the company to compete internationally. They continue to maintain fully compliant financial products to meet the legal requirements of the local and international markets for the protection of investors.

This move will make the company one of the few virtual asset operators in Dubai to have obtained the VARA license. Additionally, the status allows the company to build a more extensive operation based on transparent and compliant financial services.