Gates Inc. Tokenizes $75 Million Tokyo Properties with Oasys Blockchain

Japanese real estate investment company Gates Inc. has announced a significant initiative to tokenize $75 million worth of income-generating properties in Central Tokyo. This project, in partnership with Oasys, a major blockchain platform, aims to simplify foreign investment in the Japanese real estate market by leveraging blockchain technology. The first phase of this project involves expanding liquidity to $34 billion, with plans to eventually tokenize over $200 billion of Tokyo property, which is estimated to be about 1% of Japan’s 20.5 trillion property market.

Gates’ CEO, Yuji Sekino, highlighted the strategic importance of this partnership. By combining Gates’ extensive experience in the Japanese real estate market with Oasys’ blockchain expertise, the companies aim to drive innovation and expand access to investment opportunities in Japanese real estate. Sekino also mentioned the potential for a Nasdaq listing, indicating that the expansion of real estate operations into the real-world asset (RWA) market could serve as a catalyst for future growth.

The initiative is part of a broader effort to use cryptocurrency technology to build a next-generation investment infrastructure in Japan. This infrastructure will allow global investors to easily access Japanese real estate, overcoming traditional barriers such as legal and regulatory hurdles. The partnership plans to expand this tokenization model internationally, targeting high-value regions such as the United States, Europe, the Philippines, and other parts of Asia. Additionally, the collaboration is exploring the inclusion of intellectual property rights, such as Japanese games and anime, in the tokenization process.

Gates, which generated $145 million in revenue in 2024, is the first major Japanese firm to undertake a large-scale property tokenization initiative. The company has filed paperwork for a potential Nasdaq listing, signaling the evolution of digital assets in the country. As tokenization accelerates in the global market, Japanese firms are taking bold steps to match international standards. This project could serve as a roadmap for other companies, boosting Japan’s digital and technology power.

Ryo Matsubara, founder and representative director of Oasys, emphasized the company's vision of building a token economy that automatically reinvests returns to maximize compounding effects. This approach is designed to facilitate foreign investors' access to the Japanese real estate market, making it more accessible and efficient. The initiative reflects a growing global interest in real estate tokenization, which has seen significant surges in recent months. For instance, tokenized real estate sales in Dubai have reached substantial figures, and regions like New Jersey have begun digitizing property deeds.

The global market for tokenized real estate is expected to grow significantly, with projections indicating it could reach over $4 trillion by 2035. This growth represents a compound annual growth rate (CAGR) of more than 27%, highlighting the potential for tokenization to revolutionize real estate investing. As tokenization accelerates, institutional investors are increasingly interested in the space, with recent acquisitions of tokenized real estate assets by major fund managers.

The partnership between Gates and Oasys is part of a broader trend in the real estate industry, where blockchain technology is being leveraged to increase liquidity and overcome traditional market inefficiencies. By tokenizing real estate assets, investors can gain fractional ownership, making it easier to buy, sell, and trade properties. This approach not only simplifies transactions but also opens up new investment opportunities for a broader range of investors, including those from overseas.

The initiative by Gates and Oasys is a testament to the innovative use of blockchain technology in the real estate sector. By tokenizing $75 million worth of Tokyo properties, the companies are paving the way for a more efficient and accessible real estate market. As the initiative expands globally, it has the potential to transform the way real estate is bought, sold, and managed, benefiting both investors and the broader economy.