Real-World Asset Tokenization in Japan: The Complete Implementation Guide for SMBs26
Introduction
In the summer of 2025, a quiet revolution began unfolding in Japan’s financial sector. MUFG (Mitsubishi UFJ Bank), Japan’s largest bank, announced the acquisition of a major Osaka commercial building for approximately $681 million USD (roughly ¥100 billion) with the explicit purpose of tokenizing it on the blockchain and issuing it as digital securities. Simultaneously, GATES Inc. launched a $75 million USD Tokyo real estate tokenization project using the Oasys blockchain with plans to scale to $200 billion USD. By September, Digital Securities Inc. formally launched Japan’s first peer-to-peer digital securities trading platform, “renga.”
These are not experimental technology pilots. Japan’s largest financial institutions and emerging ventures are positioning tokenization as core to their business strategy.
Yet the reality remains: 95% of Japanese SMBs are unaware that tokenization exists as an option—or worse, confuse it with speculative cryptocurrency. This represents a significant competitive disadvantage in the making.
This article presents a Japan-market-specific business case for real-world asset (RWA) tokenization, a complete regulatory compliance roadmap, and practical implementation strategies. It includes a five-question decision framework to guide whether your company should tokenize now.
What this article delivers:
- Concrete strategies learned from MUFG, GATES, and Digital Securities real-world projects
- Clear explanation of Japan’s FSA (Financial Services Agency) regulatory framework
- Decision criteria: Should YOUR company tokenize?
- Three implementation paths: Partnership, Integrated, Full Build
- An actionable 30-day execution plan
Chapter 1: What’s Happening in Japan Right Now
MUFG: The ¥10 Billion Osaka Tower Project
In July 2025, the trust division of Mitsubishi UFJ Bank announced the acquisition of a major Osaka commercial building for approximately $681 million USD (¥100 billion) for the explicit purpose of tokenization.¹ This acquisition represents a watershed moment in Japan’s financial infrastructure.
Traditional real estate investment challenges:
- Properties of this scale typically require hundreds of millions to several billion yen per investor (limiting buyers to institutional or ultra-high-net-worth investors)
- Sale negotiations take months
- International investor access requires complex legal frameworks in each jurisdiction
With tokenization:
- Investment units as small as ¥10,000 ($67 USD) become possible
- Trading occurs 24/7/365 on secondary markets
- Domestic and international investors can participate directly
MUFG will implement this project through the Progmat platform, Japan’s institutional-grade digital securities platform. The fact that MUFG—Japan’s largest bank—invested at this scale signals that executive leadership views tokenization not as optional experimentation but as essential infrastructure.
GATES Inc.: From $75M Tokyo Project to $200M Vision
GATES Inc. announced its Tokyo real estate tokenization initiative in July 2025, targeting $75 million USD in commercial properties located in central Tokyo. The company chose the Oasys blockchain (backed by Sony and SBI) as its infrastructure².
More significantly, GATES envisions scaling this to $200 billion USD—approximately 1% of Japan’s $20.5 trillion real estate market.
GATES’ strategic approach:
- Blockchain Selection: Oasys (backed by Sony and SBI) provides institutional credibility
- Target Market: Institutional investors and high-net-worth individuals globally (previously difficult to reach)
- Speed Focus: Dramatically compressed timelines compared to traditional real estate sales
CEO Yushi Sekino stated: “GATES has long bridged real demand and investor needs in Japan’s property market. We will add firm value to Japan’s highly reliable real estate assets by means of tokens that combine profitability and utility, building next-generation investment infrastructure that allows global investors easy access to Japanese assets.”
Digital Securities Inc. “renga”: September’s Historic Launch
On September 30, 2025, Tokyo-based startup Digital Securities Inc. formally launched Japan’s first peer-to-peer digital securities trading platform, “renga.” The platform represents a watershed moment in democratizing access to institutional-grade assets.
The innovation renga represents:
Traditional Japanese market:
- Real estate investment restricted to “accredited investors” (requiring ¥300M+ net worth)
- Minimum investment: Several hundred thousand yen or more
- Sale process: Conducted through trust banks, requiring weeks to months
renga’s offering:
- Minimum investment: ¥100,000 ($672 USD)—accessible to wage earners and students
- Direct peer-to-peer trading (eliminating intermediaries)
- Inaugural fund (Kita-Shinagawa Residence): Target return 5.5% annually
- Series A funding: $8 million from SBI Ventures and Mitsubishi Corporation
Digital Securities Inc. has positioned renga as a blockchain security token platform enabling retail investors to trade fractional real estate, with ¥100,000 minimum investment and no intermediary fees following regulatory approval.
Market Size: The Real Numbers
Japan’s digital securities (tokenized assets) outstanding value:
- 2021: Essentially zero launch
- 2023: ¥4.5 billion
- 2024: ¥9.5 billion
- Mid-2025: ¥14 billion
- 2026 projection: ¥25 billion+
Security Token Offerings (STOs) issued:
- 2021: 8 offerings
- 2022: 18 offerings
- 2023: 35 offerings
- 2024: 55 offerings
- 2025: 70+ offerings (35%+ year-over-year growth)
Broader Market Context:
Japan’s blockchain market reached USD 1.51 billion in 2024, with projections to reach USD 251.80 billion by 2033, representing a 66.80% compound annual growth rate (CAGR). This positions Japan among the fastest-growing blockchain markets globally.
What these numbers signify: Japan’s tokenization market has moved past the “experimental phase” into institutionalization and commercialization.
Why Japan Leads Globally: The Regulatory Moat
Global RWA (Real-World Asset tokenization) market:
- 2022: $2.9 billion
- 2025: $30 billion (10x growth)
Yet why does Japan deserve special attention?
The Answer: Regulatory Clarity
United States:
- SEC guidance remains uncertain (novel technology)
- Institutional investors hesitant to participate
- State-by-state regulatory fragmentation
European Union:
- MiCa and other new regulations rolling out in succession
- Compliance costs unpredictable
- Asset classification remains ambiguous
Japan:
- On September 2, 2025, the FSA announced a landmark shift in crypto asset regulation, bringing digital assets under the country’s main securities law, the Financial Instruments and Exchange Act (FIEA).
- Consistent principle: “Same risk, same rules”
- Security tokens = existing Financial Instruments Exchange Act (FIEA) framework applies
- Multiple approved platforms operational (Progmat, Alterna, renga)
- 18 major financial institutions participate in “ibet for Fin” consortium⁷
The critical insight: Among global markets, regulatory risk is minimized in only a handful of jurisdictions. Japan is one.
Chapter 2: What is Tokenization? (For Business Leaders)
The Traditional Challenge: Real Estate Investment Friction
Imagine you own a ¥5 billion office building in Tokyo and want to sell it to investors.
Traditional process:
- Contact investment bank (fee: 1-3%)
- Source buyer candidates (2-3 months)
- Legal due diligence (1 month)
- Contract preparation and signature (2-4 weeks)
- Settlement and registration (1-2 weeks)
Total: 5-7 months, cost: 1.5-2% of deal value
Additional complications:
- Investors face binary choice: acquire entire property or don’t invest (fractionalization impossible)
- International investor sales require hiring attorneys in each jurisdiction (massive cost increase)
- Post-purchase, buyers enter multi-year “lock-up periods” (zero liquidity)
How Tokenization Changes Everything
Step 1: Asset Valuation
- Third-party professional appraisal (same as traditional)
- Audit prepared for digital securities framework
Step 2: Smart Contract Creation
- Ownership divided into, say, 10 million tokens (example: ¥5 billion building = 500,000 tokens × ¥10,000 per token)
- Each token represents ownership stake and dividend entitlement
- Recorded immutably on blockchain
Step 3: FSA Registration
- Digital securities = “securities” requiring prior regulatory notification
- Through approved platforms, registration simplified
- 2-4 weeks to approval (if conditions met)
Step 4: Issuance & Sale
- Listed on approved trading platforms (renga, Progmat, etc.)
- Investors purchase in ¥100,000 increments
- Trading available 24/7/365 (subject to market operating hours)
Step 5: Secondary Market
- Investors trade peer-to-peer
- Real-time price discovery
- Minimal intermediary fees
Step 6: Dividend Distribution
- Rental income from property → smart contract automatically allocates
- Monthly or quarterly distribution to token holders
- Faster than traditional trust bank distribution
Three Root-Level Benefits
Benefit 1: Capital Efficiency Unlocked
- Traditional: ¥5 billion building = 1 buyer or handful of ultra-wealthy investors
- Tokenized: ¥5 billion building = 500,000+ small retail investors possible
- Your capital no longer becomes “frozen”—redeploy immediately to other opportunities
Benefit 2: Global Investor Access
- Traditional: Selling to international investors = complex jurisdiction-specific legal setup, exponential costs
- Tokenized: Blockchain transcends borders; smart contracts handle distribution to qualified investors globally
- This is GATES’ core strategy: attract US, EU, and Asia-Pacific investors simultaneously²
Benefit 3: Constructed Liquidity Markets
- Traditional: Real estate purchase = 5-10 year locked-in investment
- Tokenized: Seller can exit in month 2 if needed (secondary market liquidity via renga or similar)
- Psychological barrier to investment drops for risk-averse investors → investor pool expands
Secondary Benefit: Fee Compression
- Traditional intermediary chain: banks, securities firms, trust banks, law firms = 1.5-3% total fees
- Tokenized + approved platform = 0.5-1.5% fees
- Investors benefit from lower fees = higher returns possible
Chapter 3: Platform Comparison—Which Should You Choose?
Tokenization in Japan requires multiple institutional components. Understanding them reveals your optimal path.
Platform Comparison Matrix
| Platform | Operator | Target Investor | Min. Investment | Fee Model | Strengths | Implementation Difficulty |
| Progmat (MUFG) | MUFG Trust + 18 FIs | Institutional/Large Assets | ¥10M+ | 3-5% issuance | Trustworthiness, institutionalized | High |
| Alterna Trust (Mitsui) | Mitsui & Co + Sumitomo Mitsui Trust | Retail Investors, RE | ¥100,000 | 2-3% issuance | Fractional access, consumer reach | Low |
| renga (Digital Securities) | Startup (SBI Ventures backed) | Retail Investors, RE + Liquidity | ¥100,000 | Peer-to-peer: minimal/none | Liquidity, innovation | Low |
| Oasys (Sony + SBI) | Sony Bank + SBI | Diverse assets (RE, IP, corporate bonds) | Project-dependent | Customized | Asset diversity, international | Medium-High |
Deep Dive: Each Platform
Progmat (MUFG): The Enterprise Standard
Background: Subsidiary of MUFG Trust & Banking, built on R3’s “Corda” enterprise DLT. 18 major financial institutions participate in the “ibet for Fin” consortium.
Use Case:
- Large-scale asset tokenization (real estate, infrastructure, corporate bonds)
- Institutional/accredited investor base
- Maximum security and compliance priority
Real Example: On October 9, 2025, MUFG announced that it will issue its inaugural digital bond (ST Bond) through Progmat, marking the first publicly offered security token bond issued by a Japanese bank. The ¥10 billion bond demonstrates MUFG’s commitment to institutionalized tokenization.
Process:
- Register with Progmat
- Asset valuation and audit
- FSA pre-approval coordination (typically approved)
- Smart contract development
- Token issuance
- Listing on approved marketplace
Cost:
- Initial setup: ¥30-50 million
- Annual maintenance: ¥10-30 million
- Issuance fee: 3-5% of total value
Timeline: 3-6 months
Best For: Asset base ¥10B+, institutional investor fundraising, security paramount
Alterna Trust (Mitsui): Democratization Strategy
Background: Developed by MDM (Mitsui Digital Asset Management). On July 3, 2025, Sumitomo Mitsui Trust Bank and MDM jointly established “Alterna Trust Co., Ltd.” as a new trust company specializing in digital securities.¹⁰
Use Case:
- Broadening investor base through fractional investing
- Converting real estate into “investment products”
- Reaching millennial and mass-market demographics
Real Examples:
- Multiple small office buildings and residential funds
- Partnership with Sony Bank enabling “Quick Deposit” (24-hour funding)
- As of June 2025, MDM has completed 16 tokenized transactions, with 14 delivered through the Alterna platform
Features:
- AI-powered automated contract generation
- Minimum investment: ¥100,000 (mass market accessible)
- Alterna Trust targets ¥100 billion in digital securities formation in Year 1, with a 5-year cumulative AUM goal of ¥1 trillion
Process:
- Register with Alterna (simplified)
- Asset valuation
- Fund structuring
- Sales to retail investors
Cost:
- Issuance fee: 2-3% of value
- Annual maintenance: ~¥5 million (dramatically lower than Progmat)
Timeline: 2-4 months (faster than Progmat)
Best For: Small-to-mid-sized real estate, mass market consumer product positioning, cost minimization
renga (Digital Securities): Secondary Market Innovation
Background: Launched September 30, 2025. Received $8 million Series A from SBI Ventures and Mitsubishi Corporation.
Revolutionary Element:
- Japan’s first peer-to-peer security token trading
- Eliminates intermediaries in investor-to-investor transactions
- Reduces fees dramatically (trading commissions: minimal or none)
Use Case:
- Providing “liquidity” to real estate fund investors
- Targeting conservative investors who prioritize exit optionality
- Converting “5-10 year lock” into “2-3 year potential exit”
Real Example:
- Inaugural fund “Residence Kita-Shinagawa” (North Shinagawa residential)
- Minimum investment: ¥100,000
- Target return: 5.5% annually (5-year term)
- Peer-to-peer trading enabling monthly-level exits
Process:
- Register with renga
- Fund structuring
- Initial offering launch
- Investors begin peer-to-peer trading
Cost:
- Extremely low (startup model)
- Trading commissions: currently none (future changes possible)
Timeline: 1-3 months (fastest option)
Best For: Small fund operators, liquidity emphasis, cost minimization
Chapter 4: FSA Regulatory Framework, Clear and Manageable
FSA’s Core Principle: “Same Risk, Same Rules”
On September 2, 2025, Japan’s Financial Services Agency announced a landmark shift in crypto asset regulation, bringing digital assets under the country’s main securities law—the Financial Instruments and Exchange Act (FIEA).⁶
The FSA’s stance is unambiguous:
“Tokenized securities receive identical treatment to traditional securities. Not special prohibitions or novel regulations—existing Financial Instruments Exchange Act (FIEA) framework applies.”⁶
What this means:
Traditional: Real estate investment fund (trust bank intermediated)
- Applicable law: Financial Instruments Exchange Act
- KYC/AML: Required
- Reporting: Periodic disclosure documents
- Registration: 2-3 months
- Cost: ¥10-30 million
Tokenized version: Same real estate fund (blockchain version)
- Applicable law: Same Financial Instruments Exchange Act
- KYC/AML: Equally required
- Reporting: Essentially identical
- Registration: 2-4 weeks through approved platforms (accelerated)
- Cost: ¥3-10 million (platform-based reduction)
The critical insight: This isn’t “new complicated regulation.” It’s “existing regulation adapted for digital.”
Security Token Classification
The FSA has proposed classification of crypto assets into two categories:
- Type 1, Funding/Business Crypto Assets: Assets raised for fundraising purposes
- Type 2, Non-Fundraising/Non-Business Crypto Assets: Assets like Bitcoin and Ethereum, not linked to fundraising
Nearly all RWA tokenization qualifies as “security tokens” under existing FIEA frameworks.
FSA’s 2026 Roadmap
On June 6, 2025, the amended Payment Services Act was enacted, introducing significant changes scheduled for 2026 implementation:
Change 1: “Electronic Payment Instrument and Crypto-asset Intermediary Services Business” License Creation
- Previously: Only mega-players could operate
- Post-2026: Mid-size startups can register as intermediaries
- Result: More options, price competition, declining fees
Change 2: Stablecoin Clarification
- Trust-type stablecoins (like JPYC) receive explicit regulatory clarity
- Cross-border payments accelerate
Change 3: Asset Domestic Holding Requirements
- Following the FTX incident, crypto asset exchange operators and electronic payment instrument transaction operators face domestic asset holding mandates
Critical insight: “Wait for clearer regulations” is faulty logic. Today’s early movement positions you advantageously for 2026 deregulation.
Chapter 5: Should YOUR Company Tokenize Now? Five-Question Framework
Q1: Does your company own “high-value assets”?
- Real estate (¥100M+)
- Intellectual property (patents, licenses)
- Corporate equipment/machinery (¥100M+)
- High-value inventory
YES → Continue to Q2
NO → Tokenization unnecessary currently
Q2: Do these assets generate “returns/dividends”?
- Real estate rental income
- IP licensing fees
- Equipment-derived revenue
- Investment dividends
YES → Continue to Q3
NO → Tokenization benefits limited
Q3: Do you want international investor access?
- Accelerate capital fundraising
- Monetize global investor demand
- Build 24/7 liquid markets
YES → Continue to Q4
NO → Domestic investors through traditional vehicles sufficient
Q4: Can you invest ¥5-20M initially
Platform-route implementation typically requires this range:
- Partnership model: ¥0-5M (success-based fees)
- Integrated model: ¥5-20M
- Full build: ¥50M+ (non-recommended except mega-institutions)
YES → Continue to Q5
NO → Partnership model works (minimizes your capital)
Q5: Do you want a competitive advantage now?
- 2025 = “first-mover advantage” period
- By 2027, tokenization likely becomes industry standard
- Early adopters secure market positioning
YES → Begin implementation immediately
NO → 2026-2027 timelines still feasible (though competitive advantage lost)
Decision Matrix
| Scenario | Assessment | Next Step |
| All Q1-Q5: YES | 🟢 Implement immediately | Start 30-day action plan |
| Q1-Q4: YES, Q5: NO | 🟢 Implement (timeline flexible) | Target 2026 completion |
| Q1-Q3: YES, Q4: NO, Q5: YES | 🟡 Partnership path | Begin small implementation |
| 3+ questions: NO | 🔴 Not ready now | Reassess in 12 months |
References
MUFG Acquires Osaka Skyscraper for ¥100 Billion to Tokenize as Digital Securities. (2025, July 26). Ainvest. Retrieved from
GATES Inc. plans to tokenize $75 million worth of Tokyo property using the Oasys blockchain. (2025, July 9). CoinDesk. Retrieved from
https://www.coindesk.com/news/2025/07/09/rwa-news-japans-gates-to-tokenize-75m-tokyo-real
Digital Securities Inc. Launches ‘renga’ for Tokenized Real Estate. (2025, October 9). Phemex. Retrieved from
MUFG’s Trust Division to Tokenize $681M Osaka Tower for Retail & Institutional Investors. (2025, July 27). Blockhead. Retrieved from
Japan Blockchain Market Size, Share, Industry Report 2033. (2025, March 23). IMARC Group. Retrieved from
Japan Reveals Landmark Shift in Crypto Asset Regulation. (2025, September 4). Blockpass. Retrieved from
Progmat Digital Asset Platform. (2024, July 29). Progmat Co., Ltd. Retrieved from
MUFG Trust and Banking Progmat Platform Overview. (2025, October). Mitsubishi UFJ Financial Group. Retrieved from
MUFG to Issue Public Offering Digital Unsecured Subordinated Bond as a Security Token Via Progmat. (2025, October 9). Mitsubishi UFJ Financial Group. Retrieved from
Notice regarding Establishment of “Alterna Trust,” a New Company that Specializes in Digital Securities. (2025, July 3). Sumitomo Mitsui Trust Bank & Mitsui & Co. Digital Asset Management. Retrieved from
¹Overview of the 2025 Amendment to the Payment Services Act (資金決済に関する法律の一部を改正する法律). (2025、 June 6). Japanese Ministry of Economy、 Trade and Industry. Retrieved from
Conclusion: Why This Moment Matters
Tokenization has moved beyond experimentation.
- Market size: ¥14 billion, growing 35%+ annually; blockchain market CAGR of 66.80% projected through 2033
- Institutionalization: FSA provided clear framework in September 2025
- Major players: MUFG, GATES actively implementing
- Retail access: Alterna, renga democratizing participation
- Regulatory: 2026 liberalizes further
2025 represents the “last first-mover window.”
By 2027, tokenization is likely to become industry standard. Companies that pioneer now will hold disproportionate market positioning.
Your 30-day action plan can launch this today:
- Week 1: Information and team alignment
- Week 2: Platform discussions
- Week 3: Business case
- Week 4: Implementation initiation
Within 30 days, your company can transition from “considering tokenization” to “actively implementing.”
