Middle East Digital Asset Council Launches $50B Fund to Tokenize Real-World Assets
The Middle East Digital Asset Council (MEDAC) unveiled a $50 billion fund to accelerate tokenization of real-world assets (RWA) across the region, with an initial focus on real estate, trade finance, and energy revenues. The initiative pairs sovereign and institutional capital with global banks, custodians, and fintech infrastructure.
Why It Matters
Tokenization is moving from pilots to production. By putting scaled capital behind it, MEDAC aims to unlock liquidity, transparency, and faster settlement for assets that have historically been slow and opaque. For investors, tokenized cash flows can provide dollar-like yield with improved portability and audited backing.
How the $50B Will Be Deployed
- Anchor deals: Flagship tokenized projects in Grade-A real estate and infrastructure concessions.
- Working capital: Trade-finance pools for exporters/importers with on-chain verification.
- Reserves & custody: Bank-grade custody, attestations, and transparent reserve reporting.
- Rails: Stablecoin/payment integrations and permissioned DeFi for collateralized lending.
- Compliance stack: KYC/AML, travel-rule messaging, and jurisdiction-specific disclosures.
Who Stands to Benefit
- Corporates: Cheaper working capital and faster cross-border settlement.
- Banks/PSPs: New fee lines from tokenized deposits, custody, and distribution.
- Asset managers: Access to fractionalized infrastructure and real-asset yield.
- Retail (via platforms): Regulated exposure to tokenized funds and income streams.
Risks and Considerations
Key risks include valuation transparency, legal enforceability of claims, and cross-border regulatory harmonization. MEDAC says each issuance will carry clear investor disclosures, bankruptcy-remote structures, and regular attestations.
Timeline and Next Steps
- Q4–Q1: First anchor issuances (tokenized real estate income & trade-finance pools).
- H1 next year: Energy-linked cash-flow notes and secondary-market distribution.
- Ongoing: Partnerships with regional exchanges and global custodians for listings.
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