Today MUFG announced that Marubeni Asset Management (MAM) is launching its first security token issuance for real estate and will use MUFG’s Progmat blockchain platform. The public offering of tokens will be sold via SBI Securities.
MAM is a significant real estate investment trust (REIT) manager and has a total of Yen 508.8 billion ($3.7bn) assets under management. According to the announcement, MAM is looking to diversify its funding sources.
The initial security is for Granair Komagome, a Tokyo building mainly targeting small residential units with a total issue price of Yen 836 million ($6 million) and a minimum investment of Yen 100,000 ($725).
MUFG’s Progmat is becoming the leading security token issuance platform in Japan. It is currently restructuring into a joint venture that will expand ownership to include Mizuho, SMBC, Sumitomo Mitsui Trust, SBI, JPX (owner of the Tokyo Stock Exchange) and NTT Data. Its main competition is Nomura’s BOOSTRY.
Mitsui & Co Digital Asset Management also launches
MAM’s unveiling today clashes with the launch of another real estate security token offering from Mitsui & Co Digital Asset Management (Mitsui), also using Progmat. As previously reported, this Alterna offering is a major new initiative from Mitsui that is distinctive not just by using blockchain for digital securities but by targeting retail investors directly using a mobile app. One of the potential benefits of blockchain is the ability to reduce intermediaries.
In contrast, Mitsui already executed four token issuances, but those funneled sales via Nomura and SBI Securities. The previous Mitsui digital securities had higher minimum investments of Yen 500,000 compared to Yen 100,000 for the latest token.
Mitsui’s pipeline for real estate tokenization is Yen 220 billion ($1.6 billion).