Key Takeaways
- MANTRA and Novus Aviation Capital have signed an MoU to collaborate on tokenizing assets within the $200 billion aviation financing market.
- Tokenization of aviation assets is expected to widen the investor base, making it easier for a broader range of participants to invest in aviation finance, traditionally a complex and capital-intensive market.
MANTRA, a blockchain platform focused on real-world assets (RWA), has partnered with Novus Aviation Capital, a global leader in aviation leasing and financing. The partnership, formalized through a Memorandum of Understanding (MoU), aims to leverage blockchain technology to tokenize assets in the $200 billion aviation financing market.
Novus Aviation Capital, established in 1994, has built a solid reputation for delivering innovative solutions in the trading, leasing, financing, and management of commercial jet aircraft. With offices spanning Europe, Asia, and the Middle East, Novus has become a key player in aviation financing, known for its creative approaches to managing and marketing aviation assets.
Novus, which has long been a pioneer in aviation leasing, is now exploring how blockchain technology can be utilized to broaden the investor base and streamline the complex processes involved in buying, financing, and trading aircraft.
“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,” said Mounir Kuzbari, Co-CEO of Novus Aviation Capital. “Engaging with MANTRA to explore the benefits of tokenization in aviation investments will not only widen the investor base for this popular asset class but also simplify the way we buy, finance, and trade aircraft.”
Tokenization, the process of converting ownership rights of an asset into a digital token on a blockchain, has been gaining traction in various sectors as a means to increase liquidity, transparency, and access to investment opportunities. For the aviation industry, which involves large-scale transactions and significant capital outlays, tokenization could revolutionize traditional financing models by making it easier for a broader range of investors to participate in the market.
John Patrick Mullin, Founder and CEO of MANTRA, expressed optimism about the collaboration’s potential to drive efficiency in aviation financing. “The close collaboration between MANTRA and Novus will create greater efficiencies in aviation financing,” Mullin said. “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.”
As the aviation industry continues to recover from the impacts of the COVID-19 pandemic, innovative financing solutions like those being developed by MANTRA and Novus could play a crucial role in revitalizing the sector. By embracing blockchain technology, Novus is positioning itself at the forefront of financial innovation in aviation, potentially setting new standards for how assets in this space are financed and traded.
The partnership between MANTRA and Novus is expected to accelerate the adoption of blockchain technology within the aviation sector, with both companies anticipating that their efforts will not only enhance the efficiency of current financing practices but also open up new avenues for investment.
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