Novus Aviation Capital has signed a memorandum of understanding (MoU) with MANTRA - a real-world asset (RWA) Layer-1 blockchain, to pioneer the 'tokenization' of assets in the aviation finance market.
RWA tokenization is essentially converting its namesake of real-world assets into tokens on a blockchain - a digital decentralised public ledger that exists over a network and is most commonly associated with digital currencies known as cryptocurrency. Layer 1 blockchains are suitable for institutions that requires greater security and regulatory compliance.
Novus Aviation Capital said the move will help attract a wider investor base.
""Our aim is to constantly innovate to work with our partners and investors to target the most attractive and robust risk adjusted returns within the aviation sector, and engaging with MANTRA to explore the benefits of tokenization in aviation investments with the aim to widen the investor of this popular asset class and simplifying the way we buy, finance and trade aircraft,"" said Novus Aviation Capital co-CEO Mounir Kuzbari.
MANTRA founder and CEO John Patrick Mullin commented: ""Novus’ deep understanding of the role tokenization plays in fulfilling that vision clearly demonstrates how transformative the use of distributed ledger technologies will be for the financial markets.""
Novus read in a statement that it aims to ""provide the most efficient leasing and financing solutions"" to the aviation industry. It said that ""embracing new channels"" such as tokenization will ""capture economic exposure"" and will allow it pioneer more innovative financing solutions.
Novus Aviation Capital and MANTRA partner to pioneer tokenisation in aviation financing
