MUFG Tokenizes ¥100 Billion Osaka Skyscraper via Blockchain Partnership

Mitsubishi UFJ Financial Group Inc. (MUFG), Japan’s largest bank, has announced plans to tokenize a ¥100 billion ($681 million) high-rise skyscraper in Osaka, marking a significant step in the integration of blockchain technology into traditional real estate investment. The initiative, led by MUFG’s trust banking arm, Mitsubishi UFJ Trust and Banking Corporation, will convert the property into a private real estate investment trust (REIT) for institutional investors while expanding tokenization efforts to foreign real estate for retail investors via a partnership with blockchain platform Progmat [1]. This dual approach aims to enhance liquidity, reduce entry barriers, and democratize access to real estate markets previously dominated by institutional players.

The Osaka skyscraper, a newly acquired asset, will be structured as a private REIT, allowing large institutional investors—such as life insurance companies—to participate without the high minimum investments typically required for physical property [2]. For retail investors, the collaboration with Progmat will enable fractional ownership in foreign real estate assets through a digital platform. By leveraging blockchain technology, the project streamlines compliance, settlement, and ownership verification processes, addressing inefficiencies in traditional real estate transactions. Progmat, a platform with prior experience in cross-border tokenization, will manage the infrastructure for structuring and distributing the digital assets, though specific overseas partnerships remain undisclosed [2].

Industry experts highlight the potential of this initiative to reshape investment paradigms. Dr. Jamal Oudeen, a fintech analyst, noted that tokenization could "reshape how assets are traded, particularly for retail investors who previously faced high minimum investments or lack of liquidity," though he emphasized challenges such as market acceptance and regulatory scrutiny must be addressed for scalability [2]. MUFG’s strategy to focus on foreign real estate for retail investors also reflects a calculated move to navigate domestic regulatory complexities. By targeting international properties, the bank may circumvent jurisdictional hurdles in Japan while catering to global demand for diversified real estate exposure. This aligns with broader trends in blockchain adoption, where cross-border transactions are increasingly seen as a pathway to bypass localized barriers [2].

The initiative builds on MUFG’s prior fintech projects, including blockchain-based supply chain finance and digital identity verification. Its leadership in Japan’s real-world assets (RWAs) market positions the bank to influence regulatory and technological frameworks as tokenization gains traction. While no launch timeline has been announced, the bank has emphasized adherence to local and international regulations, a critical factor in maintaining investor trust [2].

MUFG’s move could catalyze broader adoption among Japanese banks, accelerating blockchain integration into traditional financial services. The Osaka skyscraper project serves as a test case for institutional investors, while the retail-focused foreign assets could set a precedent for market participation. If successful, the initiative may redefine liquidity and accessibility in real estate, a sector historically constrained by illiquidity and high capital requirements. Yoshimasa Fukuzaki, an MUFG executive, stated, “This aligns with our commitment to innovation in financial services and reflects our belief in the potential of digital securities to transform investment landscapes” [2].

Sources:

[1] [Japanese MUFG Bank is planning to sell tokenized real estate products to investors] [https://www.theblockbeats.info/en/flash/304664]

[2] [JUST IN: Japan's biggest bank MUFG will now let retail investors buy tokenized foreign real estate via Progmat] [https://x.com/dr_jamaloodeen?lang=en]