Japan-based real estate investment company Gates Inc. has announced plans to tokenize real estate in central Tokyo that generates revenues worth $75 million.
The company aims to take this step through a blockchain network called Oasys to promote access to the Japanese real estate market.
Following this development, the total trading volume of exchanged OASYS (OAS) has increased by 25% over the past 24 hours.
Gates said Thursday that the move was just the beginning. Over the long term, the company aims to tokenize assets worth $200 billion, equivalent to 1% of Japan’s $20.5 trillion real estate market.
Tokenizing real estate assets (RWAs) via blockchain continues to gain global traction. As Dubai illustrates, the tokenized real estate market alone is expected to reach $16 billion by 2033. According to a joint estimate by BCG and Ripple, the total amount of all tokenized assets, such as bonds and equities, could reach $18 trillion by 2033.
Gates CEO Youshi Sekino said: “At Gates, we have bridged the gap between true demand and investor expectations in the Japanese real estate market. We add value to Japan’s trustworthy real estate assets through tokens that combine profitability and functionality.
The company is working with the Japan-based Oasys network on the tokenization process. Oasys was the Layer-1 blockchain first developed for the gaming industry, and recently shifted its focus to tokenizing real-world assets in traditional sectors such as real estate and finance.
*This is not investment advice.