MUFG, through its trust banking unit, made significant investments in real estate in Osaka, intending to offer tokenized assets.
MUFG's Real Estate Investments
MUFG invested over ¥100 billion ($681 million) in a high-rise building in Osaka. According to The Nikkei, the group plans to convert the building into digital securities and offer fractional ownership through tokenized real estate.
Tokenization and Retail Investor Access
A private real estate investment trust (REIT) will be created for institutional investors, primarily targeting life insurance firms. For retail investors, MUFG plans to sell tokenized slices of the asset, allowing ordinary buyers access to commercial real estate without needing significant capital.
Competition Between Mitsui and MUFG
Mitsui Digital Asset Management, which previously relied on MUFG Trust services, has now created its own system, the Alterna Trust, to speed up token launches. However, the firms remain linked through the Progmat platform, where MUFG maintains a 42% stake.
MUFG's investments in tokenized real estate highlight the Japanese market's interest in converting properties into tradeable assets, even as the market is still in its early stages.
