GATES Inc. is tokenizing $75 million worth of income-generating real estate in central Tokyo using the Oasys blockchain, aiming to streamline access for foreign investors.
GATES, a Japanese real estate investment company, disclosed its intention to convert $75 million worth of income-generating properties in central Tokyo into digital tokens on the Oasys blockchain. This strategic initiative aims to ease the entry of international buyers into Japan’s $20.5 trillion real estate market.
In a statement Thursday, the company said it intends to scale rapidly. Its long-term goal is to tokenize over $200 billion worth of real estate, representing about 1% of the national market. The initiative represents one of the largest property tokenization efforts by a Japanese company to date.
Global Trend: Real-World Asset Tokenization on the Rise
The development comes as tokenization, the process of turning real-world assets into digital tokens on a blockchain, has gained global traction in recent years. From real estate to equities, institutions are exploring the potential of blockchain to streamline transactions and enhance transparency.
For context, Dubai estimates that its tokenized real estate market will grow to $16 billion by 2033. On a global scale, projections from BCG and Ripple suggest the tokenized asset market could reach $18 trillion by that time.
Founded in 2012, GATES Inc. offers end-to-end property investment services. In 2024, the company reported revenue of $145 million. It has also submitted paperwork for a potential IPO on Nasdaq.
GATES aims to simplify property acquisition for international buyers by leveraging blockchain. These buyers often struggle with Japan’s legal complexities, high fees, and language barriers.
Through tokenized ownership, investors can trade property-backed tokens on decentralized platforms without relying on local brokers or institutions. To comply with regulations, the tokens will be issued through an overseas special purpose vehicle (SPV).
Partnership with Oasys Blockchain
The tokenization initiative is being carried out in collaboration with Oasys, a layer-1 blockchain initially designed for gaming applications.
Recently, Oasys has redirected its focus from gaming to tokenizing real-world assets, especially Japanese content and intellectual property. This shift is part of a broader strategy to integrate blockchain technology into traditional sectors, including finance and real estate.
Following the initial Tokyo rollout, GATES aims to expand its tokenized property model to the U.S., Southeast Asia, and Europe. In later phases, the company may also explore tokenizing intellectual property from Japanese media franchises, turning pop culture assets into digital investment opportunities.
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