Japanese Retail Investors Can Now Trade Tokenized Real Estate: What’s Next?
Tokyo-based startup Digital Securities Inc. has launched “renga,” a blockchain-based security token platform allowing individual investors to buy fractional stakes in large real estate assets.
The service opens September 30 with its first fund and enables direct investor-to-investor trading—an unprecedented feature in Japan’s regulated securities market.
Fractional Real Estate Investments Accessible to Retail Investors
Digital Securities Inc. introduced its first renga-branded fund, “Residence (Kita-Shinagawa),” with subscriptions open from September 30 to December 8. The fund targets an annual yield of 5.5% over five years. Investors can purchase units starting from $3,362 (500,000 yen), with the minimum trading unit at $672 (100,000 yen).
Security tokens issued via blockchain allow fractional ownership of high-value assets. This structure reduces entry barriers for retail investors, who traditionally could not access such investments. Furthermore, tokens can be traded directly between investors on the platform.
This setup eliminates intermediary fees from brokers or trust banks. Digital Securities obtained regulatory approval to operate this fully digital marketplace. The firm also holds several related patents. Together, these steps aim to support broader retail participation while maintaining compliance.
Expanding Digital Securities’ Marketplace Beyond Real Estate
The renga platform plans to host financial products from multiple issuers. These may include energy infrastructure, aircraft, ships, and corporate bonds.
“Japanese households often favor cash savings. Many people do not know which financial products to choose, and suitable options are limited. Renga aims to provide stable products that match this conservative preference.” CEO Kohei Yamamoto said
He added, “Investors can receive non-cash benefits linked to the underlying assets. This includes perks such as exclusive coupons.” The marketplace allows token trading, offering liquidity for investors concerned about locking funds for extended periods. Yamamoto compared the platform to Netflix, stating, “We want to create a system where multiple high-quality products are accessible in one place.”
Industry experts note this model may “democratize securities investment,” letting retail investors access asset classes previously limited to institutions. However, taxation remains a concern.
Currently, Japanese law classifies digital security income as miscellaneous taxable income. Yamamoto commented, “Regulators have not said the current taxation is final. Changes may occur in the future.”
Series A Funding Supports Expansion
Digital Securities completed a second close of its Series A round on September 25, raising $2 million(300 million yen.) This brought total funding to $8 million(1.2 billion yen). Investors included SBI Ventures Three, Mitsubishi Corporation, and the MUFG No.10 Investment Business Limited Partnership backed by Mitsubishi UFJ Bank and MUFG Capital.
Ryo Kato, Deputy Manager at SBI Securities’ Strategic Business Promotion Division, explained that products previously available only to institutions can now be fractionalized for retail investors, allowing more people to participate in securities investment. He also noted that in the future, assets such as films, wine, or art could become financial products, meaning personal interests may increasingly intersect with investment opportunities.
The firm plans to scale the marketplace to a one-trillion-yen level while diversifying tokenized asset offerings.
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