CREAL, a major real estate crowdfunding company, has applied through its consolidated subsidiary 臼木証券 for amended registration for Type I Financial Instruments Business and is moving toward a full-scale entry into the real estate security token market. This will enable it to expand a structure for fractionalising and trading real estate.
CREAL submitted an application to the Kanto Local Finance Bureau, through its consolidated subsidiary 臼木証券, for amended registration for Type I Financial Instruments Business. This procedure is intended to establish the legal business framework for handling real estate security tokens (STs).
CREAL envisages launching CREAL ST (provisional name), an online investment service specialising in real estate STs, and is considering handling security tokens using a beneficiary certificate issuing trust structure backed by real estate assets.
Real estate security tokens fractionalise and distribute income and rights arising from real estate as digital securities, and are considered to enable participation in investments with small amounts. As the interest-rate environment continues to change, individual investors are also becoming more selective.
A full-scale entry could broaden individual investors' access to alternative assets, while investors will also need to assess factors such as the operating status, costs and liquidity of the underlying real estate. Further official announcements and progress are awaited.