Gates Inc. to Tokenize $75 Million in Tokyo Properties on Oasys Blockchain

Gates Inc., a leading Japanese real estate investment firm, has unveiled plans to tokenize $75 million worth of central Tokyo properties on the Oasys blockchain. This initiative represents one of the most substantial real estate tokenization efforts in Japan to date. The collaboration between Gates and Oasys, announced on Wednesday, signifies a major step forward for both companies. Gates intends to eventually tokenize over $200 billion in assets, which constitutes approximately 1% of Japan’s real estate market. Concurrently, Oasys is expanding its reach beyond gaming, delving into the tokenization of real-world assets (RWAs).

Gates, which generated $145 million in revenue for 2024 and was recognized on the Financial Times’ “High-Growth Companies Asia-Pacific 2023” list, is currently conducting a Nasdaq roadshow following the submission of its F-1 prospectus. The company has obtained the necessary financial and real estate business licenses in Japan and plans to execute the RWA project through a special purpose vehicle (SPV) established overseas. Gates CEO Yushi Sekino underscored the company's dedication to compliance and securing the required licenses in relevant jurisdictions through a robust partnership.

Ryo Matsubara, the founder and representative director of Oasys, emphasized the team's focus on creating a token economy that automatically reinvests returns to maximize compounding effects. The partnership between Gates and Oasys extends beyond Japan, with plans to expand the tokenization model internationally. Target regions include the United States, Europe, the Philippines, and other parts of Asia. Over time, the initiative could also encompass tokenized Japanese intellectual property, such as gaming and anime assets.

Global interest in real estate tokenization has surged in recent months. In Dubai, tokenized real estate sales have reached significant figures, while New Jersey has begun digitizing property deeds worth hundreds of billions. According to a report, the global market for tokenized real estate is projected to exceed $4 trillion by 2035, reflecting a compound annual growth rate (CAGR) of over 27%. This growth highlights the potential of tokenization to transform real estate investing by addressing liquidity issues and enhancing market efficiency.

As tokenization accelerates, institutional investors are increasingly interested in the space. The partnership between Gates and Oasys is set to contribute to this trend, offering a model that could be replicated in other markets. The initiative aims not only to enhance liquidity but also to provide a more efficient and transparent way of investing in real estate, potentially attracting a broader range of investors.