Mitsubishi UFJ Morgan Stanley Securities (MUMSS) will launch its first real estate security token next week as part of its consumer targeted real estate tokenization venture ASTOMO. In Japan, real estate tokens dominate the tokenization market, unlike the US where money market funds and private credit lead. While most tokens represent interests in single buildings, the first ASTOMO token covers three newly built residential buildings in Osaka City operated by real estate firm Kenedix.
ASTOMO is a joint venture with brokerage startup Smart Plus, which enables a mobile first experience for consumers. MUMSS selects the eligible properties and organizes the structuring, with the investors onboarding to the Smart Plus app where they transact. The client relationship is technically with Smart Plus. The same app was used to enable MUMSS clients to invest in MUFG’s recently issued digital bond.
For retail investors the big advantage is the minimum investment amount of Yen 100,000 ($637). For most real estate tokens including this one, a trust structure is put in place, with securities firms currently lobbying for regulatory changes so they can use a simpler, more cost effective structure.
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