MUFG Acquires ¥100B Osaka Property to Push Tokenized Real Estate Expansion in Japan

Mitsubishi UFJ Financial Group (MUFG) has acquired a ¥100 billion (approximately $681 million) high-rise property in Osaka through its trust banking unit, positioning it as a flagship asset for tokenized real estate in Japan [1]. The acquisition marks a strategic push to expand digital securities in the market, with the building set to be converted into a private real estate investment trust (REIT) for institutional investors, primarily life insurance firms, and tokenized slices for retail buyers [1]. This move underscores Japan’s focus on tokenizing commercial property rather than digital bonds, a trend observed since 2021 when 63 digital securities totaling ¥194 billion ($1.3 billion) were issued, 80% of which involved real estate [1].

MUFG’s initiative aligns with broader efforts to democratize access to large commercial assets. By fractionalizing ownership through tokens, the bank aims to enable retail investors to participate in real estate markets without requiring substantial capital [1]. For institutions, the private REIT structure offers a conventional entry point, reflecting a dual-track approach to digitization. However, the market remains nascent: the Osaka Digital Exchange’s START market lists only six real estate tokens, with monthly trade volumes totaling just ¥23 million ($157,000) [1].

The development also highlights evolving dynamics between MUFG and Mitsui Digital Asset Management, a key player in tokenized real estate. Mitsui previously partnered with MUFG Trust to handle legal frameworks for its tokens but recently established its own Alterna Trust system to accelerate offerings [1]. This shift signals a competitive shift, as Mitsui now issues 16 tokenized real estate deals independently, with 14 delivered via its Alterna platform [1]. Despite the split, both entities remain linked through Progmat, MUFG’s security token platform, which Mitsui agreed to continue using for future projects [1].

MUFG’s stake in Progmat—42%—ensures ongoing backend revenue even after Mitsui’s departure as a trust client. This hybrid strategy balances direct competition with strategic collaboration, reflecting the fragmented yet growing digital asset ecosystem in Japan [1]. The bank’s ability to monetize infrastructure while advancing its own tokenization goals may determine the success of this model in a market still refining regulatory and technical frameworks [1].

The transaction underscores Japan’s cautious yet deliberate adoption of blockchain for asset tokenization. With regulatory clarity and infrastructure development lagging behind demand, market participants like MUFG and Mitsui are testing boundaries to establish scalable models. However, the low liquidity of existing tokens suggests that broader institutional and retail adoption hinges on overcoming operational hurdles and building trust in digital ownership mechanisms [1].

Source: [1] [MUFG acquires $681M Osaka real estate to push tokenization in Japanese markets] [https://coinmarketcap.com/community/articles/68863dbd83cb3719238075c5/]