In an exciting development for the Japanese real estate market, GATES Inc., a prominent investment firm, has announced its plans to tokenize $75 million worth of income-generating properties located in central Tokyo. This initiative, utilizing the Oasys blockchain, aims to streamline access for foreign investors looking to navigate Japan’s property landscape.
The firm’s ambitious expansion strategy includes a goal to tokenize over $200 billion in assets, representing approximately 1% of Japan’s substantial $20.5 trillion property market. This move is part of a broader trend toward tokenization of real-world assets, which has gained increasing popularity globally as institutions recognize the benefits of blockchain technology for transactions and ownership documentation. Notably, Dubai is projected to develop a tokenized property market worth $16 billion by 2033, while the overall tokenized asset market could reach an estimated value of $18 trillion by the same year, according to forecasts by BCG and Ripple.
As the first major Japanese company to embark on such a substantial property tokenization initiative, GATES Inc. is poised to redefine the investment landscape. Established in 2012, the firm offers comprehensive property investment services and reported an impressive $145 million in revenue in 2024. It is currently exploring the possibility of a Nasdaq listing, further emphasizing its growth trajectory.
By utilizing blockchain for ownership records, GATES seeks to alleviate the challenges often faced by foreign buyers, who typically encounter prohibitive legal costs, intricate regulations, and language barriers in accessing Japan’s real estate market. This innovative approach will enable investors to trade real estate-backed tokens on decentralized platforms, bypassing the need for local intermediaries.
To ensure regulatory compliance, the tokens will be issued through an overseas special purpose vehicle. Yushi Sekino, CEO of GATES, highlighted the company’s mission, stating, “GATES has long bridged real demand and investor needs in Japan’s property market. We will add firm value to Japan’s highly reliable real estate assets through tokens that combine profitability and utility, establishing next-generation investment infrastructure that facilitates easy access for global investors to Japanese assets.”
Oasys Shifts Focus to Real-World Asset Tokenization
Collaborating with Oasys, a layer-1 blockchain initially designed for gaming, GATES is part of a significant pivot towards real-world asset (RWA) tokenization. This shift reflects a growing intention to apply blockchain innovations to traditional sectors such as property and finance.
Ryo Matsubara, Representative Director of Oasys, articulated the immense value of Japanese cultural assets, asserting, “Japanese content, whether game IP or other cultural assets, commands high global value. Providing such Japanese assets as RWAs is an area where Oasys, with its Japanese roots, can fully leverage its strengths.”
Following the launch of its initial phase in Tokyo, GATES has plans to introduce its tokenized real estate model to markets in the U.S., Southeast Asia, and Europe. Future phases may also encompass the tokenization of intellectual property rights related to Japanese media franchises, transforming cultural exports into lucrative digital investment products.
