Mitsubishi UFJ Trust and Banking, the asset management branch of Japan's largest bank MUFG, has invested over 100 billion yen to purchase a high-rise building in Osaka to develop digital securities and Tokenize real estate.
This strategy aims to distribute real estate through Tokens to retail and institutional investors, while also providing a private real estate investment fund (REIT) for life insurance companies.
- Investing 100 billion yen in a high-rise building in Osaka to develop digital securities and Tokenize real estate.
- Distributing real estate Tokens to retail and institutional investors, accessing the digital financial market.
- Selling the building in the form of a real estate investment fund (REIT) for life insurance companies.
Why is Mitsubishi UFJ Trust and Banking investing in Tokenized real estate?
Mitsubishi UFJ Trust and Banking aims to leverage digital technology to improve the traditional real estate market, creating new attractive product lines.
According to CEO Yamamoto Yoshi, this decision opens a new era for real estate assets by converting to digital securities, helping to diversify portfolios and increase liquidation in the market.
"Tokenizing real estate not only helps investors access assets easily but also expands investment opportunities with greater transparency and safety."
Yamamoto Yoshi, CEO Mitsubishi UFJ Trust and Banking, 27/07/2023
This investment marks an important step towards the DeFi model using Blockchain technology to digitize assets, enhancing customer experience and operational efficiency.
How will real estate Tokenization work in Osaka?
The building purchased in Osaka will be the underlying asset for issuing digital securities in the form of Tokens, allowing many investors to own small portions without requiring too much initial Capital.
With this model, real estate is divided into multiple Token parts, helping to increase liquidation speed and create more diverse investment options for individuals and organizations.
Particularly, institutional investors like life insurance companies can buy back the building in the form of a private real estate investment fund (REIT), ensuring peace of mind about profits and professional asset management.
How is the real estate Tokenization market developing in Japan?
Japan is strongly promoting digital finance and asset Tokenization, being one of the first countries to apply specific regulations for digital securities and Tokenized real estate.
According to a 2023 report by Japan's Ministry of Economy, the real estate Tokenization market is expected to grow by an average of 30% annually, attracting large Capital flows from domestic and international investors.
"The development of digital securities and real estate Tokenization will help the Japanese market lead the Asian region in Blockchain technology applications in finance."
Suzuki Haruki, digital finance expert, Tokyo, 2023
The proactive steps of large banks like MUFG create momentum for trust and sustainable development of the Blockchain platform in real estate and financial business.
Main benefits of buying the building and issuing real estate Tokens
Digitizing real estate assets helps enhance flexibility, optimize management capabilities, and expand access to more diverse investors.
Factors such as low transaction fees, fast liquidation time, and better risk allocation create great appeal, especially in the context of complex global financial market fluctuations.
| Characteristics | Traditional Real Estate | Tokenized Real Estate |
|---|---|---|
| Liquidation capability | Low, difficult to transfer quickly | High, easy to trade through Tokens |
| Transaction costs | High due to legal procedures and intermediaries | Low due to Blockchain technology |
| Capital allocation | Requires large Capital, hard to distribute | Allows small investments, diversification |
Frequently Asked Questions
What is real estate Tokenization?
Real estate Tokenization is the process of converting real estate assets into digital Tokens, helping to divide and trade more easily on the Blockchain platform.
What is Mitsubishi UFJ Trust and Banking's purpose in buying the building?
The company aims to develop digital securities and bring real estate into the Token model to expand investment opportunities for individuals and organizations.
Are real estate Tokens safe?
Real estate Tokens operate on Blockchain with high transparency, regulated by clear Japanese law, enhancing safety for investors.
How can institutional investors participate?
Institutional investors like insurance companies can buy the building through a private real estate investment fund (REIT) issued from Tokenized assets.
How will the real estate Tokenization trend develop in Japan?
Demand is expected to grow by an average of 30% annually, strongly driven by large banks and the improvement of legal frameworks in the digital finance sector.
