MUFG Enters $1.3 Billion Japan Security Token Market

Mitsubishi UFJ Financial Group launched a security token platform for retail investors. The move enters a market that has grown to $1.27 billion (JPY 193.8 billion) in cumulative issuance as of August 2025.

ASTOMO, the new platform, allows individuals to invest in fractionalized real estate starting at $653 (JPY 100,000). This lowers the entry point for a product category primarily targeting institutional and high-net-worth investors.

MUFG Joins Financial Institutions Expanding Token Products

Japan’s security token market has expanded rapidly over the past two years. Major financial institutions have concentrated issuance under the country’s Financial Instruments and Exchange Act. Industry projections suggest the market could reach $2.29 billion (JPY 350 billion) in accumulated issuance, though no official timeline has been provided.

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MUFG’s retail entry follows similar moves by other major Japanese financial groups. In February 2025, Daiwa Securities issued a $6.5 million (JPY 1 billion) tokenized corporate bond for a Toyota Group entity. The bond sold out quickly after launch. Mizuho Trust Bank and Nomura Holdings have issued security tokens since late 2023, backed primarily by real estate beneficiary certificates.

Major banks and securities firms are applying blockchain technology to regulated assets. They have moved beyond real estate into corporate bonds and infrastructure investments. Japan legally defines security tokens as “Electronically Recorded Transferable Rights” under existing securities law. This requires the same regulatory compliance as conventional financial instruments.

Regulatory Structure Shapes Market Development

Japan’s security token market has developed within a strict regulatory framework, distinguishing it from tokenization trends in other markets. Unlike other jurisdictions where tokenized assets integrate into decentralized finance protocols, licensed financial institutions channel almost all Japanese issuance.

The Osaka Digital Exchange launched a secondary trading platform for security tokens in December 2023. This addressed liquidity constraints that have historically limited private asset investments. Pending tax reforms may expand eligible assets for tokenization to include movable property and venture capital fund interests. Industry observers say this would resolve double taxation issues.

The regulatory approach has created a market structure characterized by institutional dominance and domestic focus. Jurisdictional differences in securities definitions and tax treatment keep cross-border transactions limited.

Market Positioned Between Traditional Finance and Digital Assets

MUFG’s move into the retail security token market reflects a broader strategy among Japanese financial institutions. They aim to digitize traditional asset classes within existing regulatory boundaries. Major banks and securities firms are testing a hypothesis by offering fractional ownership at lower price points. Can blockchain-based products attract retail investors who have historically been excluded from high-value asset markets?

This approach contrasts with the previous years’ initial coin offering boom, which operated primarily outside regulatory frameworks. Security tokens face the same investor protection rules, disclosure requirements, and anti-money laundering standards as traditional securities.

Whether this regulated model can achieve the scale projected by industry participants remains to be seen. The market’s growth will likely depend on continued product diversification, secondary market liquidity, and resolving cross-border regulatory fragmentation, which currently limits international investment flows.

MUFG declined to provide specific user acquisition targets or revenue projections for ASTOMO.