Mitsubishi UFJ Financial Group (MUFG), Japan’s largest bank, is set to tokenize a ¥100 billion ($681 million) skyscraper in Osaka, marking one of the country’s most ambitious blockchain applications in real estate to date.
The initiative, led by MUFG’s trust banking arm, aims to convert the newly acquired high-rise into a private real estate investment trust (REIT), targeting institutional investors such as insurance firms. In parallel, a partnership with blockchain platform Progmat will allow retail investors to access fractional ownership in foreign real estate assets through tokenized shares offered on digital platforms.
Blockchain Meets Brick and Mortar
By utilizing blockchain infrastructure, MUFG hopes to streamline compliance, ownership verification, and settlement processes—often seen as cumbersome in traditional real estate deals. The technology could help increase liquidity and reduce the traditionally high capital thresholds associated with property investment.
While the Osaka skyscraper project will remain open only to large investors, the collaboration with Progmat takes a bolder step by opening international real estate markets to retail participants. By tokenizing foreign properties, MUFG not only avoids regulatory bottlenecks in Japan but also taps into growing global demand for diversified and accessible investment opportunities.
A Test Case for Broader Change
Industry observers say the project could become a blueprint for financial institutions exploring asset tokenization. Dr. Jamal Oudeen, a fintech analyst, emphasized its significance: “Tokenized real estate could lower the barrier to entry and offer new liquidity routes for everyday investors, but challenges like regulatory clarity and investor education remain critical.”
Progmat, which has previously handled cross-border digital asset offerings, will oversee the structuring and distribution of these real estate tokens. While specific foreign markets are yet to be disclosed, the move indicates a growing appetite for innovation among traditional banks—especially in Japan, where real-world asset (RWA) tokenization is gaining traction.
MUFG’s Expanding Digital Strategy
This project builds on MUFG’s broader fintech ambitions, which already include digital identity solutions and blockchain-based trade finance. The bank has positioned itself as a leader in Japan’s emerging digital asset sector and continues to work closely with regulators to ensure full compliance.
No official launch date has been announced, but MUFG executives say regulatory alignment and investor protection are top priorities. “This reflects our commitment to digital innovation and our belief in the potential of tokenized securities to reshape investment markets,” said Yoshimasa Fukuzaki, a senior executive at MUFG.
If successful, the Osaka skyscraper tokenization could pave the way for more institutions to adopt blockchain in legacy asset classes. For investors—both large and small—it could redefine what access to real estate really means.
