MUFG Buys $681M Osaka Tower to Launch Tokenized REITs

- Japan's largest bank, MUFG, acquires a $681 million high-rise in Osaka. - The bank will tokenize the property into digital securities for fractional ownership and institutional REIT opportunities. On July 25, 2025, Ledger Insights, Cryptopolitan, and Traders Union reported that Japan’s largest bank, MUFG, purchased a ¥100 billion ($681 million) Osaka high-rise that it will tokenize into digital securities. This strategic acquisition will create fractional ownership opportunities for retail investors and establish private real estate investment trusts (REITs) for institutional investors, such as life insurance companies, demonstrating MUFG’s commitment to modernizing asset management with blockchain technology. Japan’s real estate tokenization market started in 2021 and continues to expand gradually. According to Ledger Insights on July 25, there have been 63 total digital securities issuances valued at ¥194 billion ($1.3 billion), with the real estate sector accounting for approximately 80% of them. While the market is promising, its trading activity remains limited. For instance, six tokenized real estate assets on the Osaka Digital Exchange's START market generated only ¥23 million ($157,000) in cumulative monthly trading volume. MUFG’s initiative is facilitated by Progmat, a blockchain-based tokenization platform that the bank spun off while retaining a 42% ownership stake. Progmat provides the technological backbone for issuing these security tokens and will play a central role in the fractional ownership offerings for the Osaka property, underscoring MUFG’s leadership in digital asset innovation within Japan’s financial sector. Meanwhile, MUFG’s key competitor, Mitsui & Co. Digital Asset Management, is also streamlining its real estate tokenization operations. Mitsui, which tokenizes assets on its Alterna platform, previously used MUFG Trust for the legal setup of its tokens but recently established its own dedicated entity, Alterna Trust, to improve issuance efficiency. Despite this change, Mitsui still uses Progmat for most of its token issuances, highlighting the complex relationship of competition and collaboration between the two institutions. Japan’s adoption of real estate tokenization remains gradual but shows significant potential. As major players like MUFG and Mitsui continue to innovate and compete, the market is preparing for broader growth. However, challenges with scaling asset liquidity still remain. On July 27, 2025, CoinMarketCap reported that Ethereum (ETH) was trading at $1,923 as of 12:00 UTC, reflecting a 1.8% decrease in its 24-hour trading volume.