Progmat, recognized as Japan's leading security token platform, has successfully migrated over ¥452 billion (approximately $2.8 billion) in various assets including tokenized bonds and real estate to Avalanche's dedicated Layer 1 blockchain. This significant shift was made public via an Avalanche blog post on July 10, 2026, marking a key step in the evolution of institutional tokenization.

Key Developments in Migration

Originally developed within Mitsubishi UFJ Trust and Banking, Progmat became an independent entity in October 2023. Currently, it captures 53.4% of Japan’s security token market in terms of deal volume and 64.6% based on total issuance value. Notable backers of Progmat include prominent financial institutions such as Mizuho, the Tokyo Stock Exchange, and SBI. The migration process, known as Project Keystone, involved transitioning existing smart contracts from Java on Corda to Solidity, the standard language for Ethereum Virtual Machine-compatible chains. This switch reportedly enhances rights-transfer processing speeds by three to five times, achieving transaction finality in under two seconds.

AvaCloud facilitated the migration by providing managed infrastructure that meets the rigorous standards of financial institutions, securing both SOC 1 and SOC 2 Type II attestations. Importantly, while Avalanche Layer-1s allow for application-specific chains with chosen validator sets, this migration from Corda to Avalanche remains within a controlled environment rather than fully embracing public-chain interoperability.

Institutional Implications and Future Outlook

Looking ahead, Progmat has initiated a Tokenized Government Bonds and On-Chain Repo Working Group, which includes BlackRock Japan and Avalanche. This collaboration aims to explore the potential for digital Japanese Government Bonds to facilitate continuous trading and same-day settlement in institutional repurchase transactions. The results are expected to be published by October 2026, with a pilot program slated for later in the year. Additionally, Progmat is investigating Bitcoin-backed digital credit products in conjunction with Metaplanet and JPYC, although these projects are still under review without finalized products.

The migration reflects a broader trend in institutional finance where traditional investment vehicles are being tokenized, aligning with ongoing efforts in bond tokenization across various markets. Avalanche's growing presence in the space of regulated real-world asset infrastructure, coupled with BlackRock's substantial $900 million BUIDL fund and nearly $2.1 billion in total tokenized assets, showcases a shift towards a more mature and sophisticated on-chain finance ecosystem.

This article is for informational purposes only and does not constitute financial advice.