Japanese leasing firm trials real estate tokenization

Japanese leasing firm Sumitomo Mitsui Finance and Leasing Company (SMFL) is conducting a trial of real estate tokenization, showcasing its interest in the innovative technology. In collaboration with tokenization platform Vertalo, SMFL plans to integrate Vertalo’s token platform with its asset tracking platform, AssetForce, to revolutionize the local real estate industry. The integration will enable SMFL to provide real estate firms with comprehensive data on tokenized assets, including non-fungible tokens (NFTs). Additionally, SMFL aims to apply the digital asset tracking solution to furniture in leased properties and explore its use in Digital Product Passports. The firm believes that the solution will address pain points in the property market and enhance data security. Tokenization of real estate assets is becoming increasingly popular in Japan as firms recognize the advantages of broadening investor participation and building trust in the sector. Other countries, such as India and Israel, have also embraced fractionalization to improve liquidity rates in the real estate industry.