The initiative marks Japan’s first domestically domiciled tokenized investment trust, with beneficiary rights recorded on paper certificates while the registry is migrated onto a blockchain in the initial phase.

Since December 2025, the four firms have been building out infrastructure, legal structure, and workflows, with plans to broaden to external investors and integrate stablecoins and tokenized deposits, including delivery versus payment concepts.

Mitsubishi UFJ Asset Management, Mitsubishi UFJ Morgan Stanley Securities, Mitsubishi UFJ Trust Bank, and Progmat will run the full operational chain in a live environment, from asset management and trust administration to rights management and tokenization infrastructure, to surface practical challenges like NAV calculation, new subscriptions, and partial redemptions.

The project aims to connect tokenized trust structures with digital money to enable on-chain yield deployment, flexible settlement, and use of collateral, with potential use cases including deploying surplus funds as tokenized investments and switching to digital money for settlement.

A four-firm MUFG consortium began a live production proof-of-concept using 200 million yen of proprietary capital in short-term government bonds (three months or less) to operate the domestically domiciled tokenized investment trust as of August 31, 2025.

This proof-of-concept intentionally differs from foreign-domiciled fund experiments by focusing on domestically domiciled structure and testing the extent of on-chain registry migration and rights transfer within current legal frameworks.

The effort operates within Japan’s investment trust law, where beneficiary rights are still tied to paper certificates, and the initiative seeks legislative and regulatory amendments based on operational challenges identified during testing.