MBK, a Tokyo-based and Tokyo Stock Exchange-listed merchant bank, has signed a deal for the tokenization of property in Estonia.

The Japanese financial company said in an announcement on Monday it will be working with BitOfProperty (BOP), a Singapore-incorporated, Tallinn-operating enterprise that’s already selling fractional ownership of real estate in the EU member state. BOP said it has five properties currently in the capital of the country yielding between 5.3 and 6.59 percent.

According to the announcement, BOP will be responsible for the acquisition of the properties. It will work with MBK to convert the assets into blockchain-based tokens, which will then be traded through Angoo Fintech, an Estonian company which was acquired by MBK in May 2019.

Angoo Fintech was originally set to open its platform by the end of August, but was forced to delay due to regulatory compliance issues.

MBK has been active in the crypto and blockchain space. In 2017, it formed MBK Asia together with BtcBox, a Japanese exchange that was established in 2014 and registered with the Kanto Finance Bureau.

Last month, MBK said it signed a deal with Hong Kong Stock Exchange-listed BS Securities to cooperate in the area of security token offerings and to provide support for the development of business in Japan and China.

MBK, which was founded in 1947 and was originally involved in the textile business, is primarily focused on Japan and China in terms of investment and has interests in a hotel, a bowling alley and an internet cafe in Japan.

Tallinn landscape image via Shutterstock