Tokyo-based Startup Digital Securities Inc. has launched Renga, a blockchain-based security token platform, allowing individual investors to purchase fractional stakes on large real estate assets.
The service opened on September 30th with its first fund, allowing direct investors to trade. This is an unprecedented feature in the Japanese regulated securities market.
Fractional Real Estate Investments Accessed by Retail Investors
Digital Securities Inc. opened a subscription from September 30th to December 8th, and introduced its first Renga brand fund, “Kita-Shinagawa.” The fund targets an annual yield of 5.5% over five years. Investors can purchase units starting at $3,362 (¥500,000), with a minimum trading unit of $672 (¥100,000).
Security tokens issued via the blockchain allow fractional ownership of high-value assets. This structure reduces entry barriers for retail investors who have traditionally not had access to such investments. Additionally, tokens can be traded directly between investors on the platform.
This setup eliminates brokerage fees from brokers or trust banks. Digital Securities has received regulatory approval to operate this fully digital market. The company also holds several related patents. Together, these steps are intended to support wider retail participation while maintaining compliance.
Extend the digital securities market beyond real estate
The RENGA platform plans to host financial products from multiple issuers. These may include energy infrastructure, aircraft, vessels, and corporate bonds.
“Japanese households often support cash savings. Many people don’t know which financial product to choose. There are limited options available. Brick aims to provide a stable product that suits this conservative taste,” CEO Yamamoto said.
He said that “investors can receive non-cash benefits associated with the underlying assets, including perks such as exclusive coupons” markets allow to trade tokens, providing liquidity to investors concerned about locking funds over the long term. Yamamoto compares the platform with Netflix and says that he wants to create a system that allows multiple high-quality products to be accessed in one place.
Industry experts point out that the model could “democratize securities investments,” allowing retail investors to access previously restricted asset classes. However, taxation remains a concern.
Currently, Japanese law classifies digital security income as other taxable income. Yamamoto commented, “The regulators have not said that the current taxation is final. There is a possibility that future changes will occur.”
Series A funding supports expansion
Digital Securities completed the second round of the Series A round on September 25th, raising $2 million (300 million yen). This brings the total funding to $8 million (1.2 billion yen). Investors include the MUFG No. 10 Investment Business Limited partnership supported by SBI Ventures Three, Mitsubishi Corporation, and Mitsubishi UFJ Bank and MUFG Capital.
Ryo Kato, assistant manager of strategic business promotion at SBI Securities, explained that previously institutions can fractionate the products available to retail investors, allowing more people to participate in securities investments. He also pointed out that in the future, assets such as film, wine, and art could become financial products. In other words, personal gains can more and more intersect with investment opportunities.
The company plans to expand its market to a 1 trillion-year level, diversifying its tokenized assets offering.
Japanese retail investors are now able to trade tokenized real estate. What’s next? It first appeared in Beincrypto.
