The Mitsubishi UFJ Financial Group (MUFG) has taken a significant step into the digital asset sector by launching ASTOMO, a security token platform aimed specifically at retail investors.
This move ushers the financial giant into a booming market, whose cumulative issuance has already reached $1.27 billion (193.8 billion yen) as of August 2025.
ASTOMO represents a breakthrough for individual investors, allowing them to invest in fractional properties with an initial capital of just $653 (100,000 yen).
This dramatically lowers the entry threshold for a product category historically reserved for institutional and high net worth investors. By offering fractional ownership at lower price points, major banks and securities firms are testing the hypothesis that blockchain-based products can attract a retail audience hitherto excluded from high-value asset markets.
Japanese Token Market Expansion
MUFG's entry follows the trend of other major Japanese financial institutions. The security token market in Japan has seen rapid expansion over the past two years, with issuance concentrated under the country's strict Financial Instruments and Exchange Law.
Industry projections suggest that the market could expand further, reaching an accumulated issuance of $2.29 billion (¥350 billion), although no official timeline has been provided.
Other financial giants have also contributed to this growth. In February 2025, Daiwa Securities issued a $6.5 million (1 billion yen) tokenized corporate bond for an entity of the Toyota Group, which sold out quickly after launch.
Similarly, since late 2023, Mizuho Trust Bank and Nomura Holdings have issued security tokens, mainly secured by real estate beneficiary certificates.
Security tokens are legally defined as 'Electronically Registered Transferable Rights' and are subject to the same regulatory compliance requirements, including investor protection and anti-money laundering standards, as conventional financial instruments.
Strict regulation and future perspectives
Japan's strict regulatory framework is a distinguishing feature. Unlike other jurisdictions, where tokenized assets are integrated into decentralized finance protocols, in Japan almost all issuance is channelled through licensed financial institutions.
To address historical liquidity constraints, the Osaka Digital Exchange (ODX) launched a secondary trading platform for security tokens in December 2023.
In addition, tax reforms are pending that could resolve double taxation issues and expand the assets eligible for tokenization, potentially including movable assets and interests in venture capital funds.
Although the regulated model is positioned between traditional finance and digital assets, the long-term success of the market will depend on continued product diversification, secondary market liquidity and the resolution of international regulatory fragmentation that limits cross-border investment flows.
MUFG declined to provide specific user acquisition targets or revenue projections for its new ASTOMO platform.
