Progmat Adopts Avalanche L1 to Support Japan’s Expanding Security Token Market
Japan’s leading security token platform is preparing to migrate more than $2 billion in tokenized assets onto a dedicated Avalanche Layer 1 network.
Japan’s largest security token platform, Progmat, is shifting more than $2 billion in tokenized real estate and corporate bonds from Corda onto a dedicated Layer 1 network built on Avalanche. The migration reflects a broader change in how regulated financial products are being issued and managed in Japan.
Rather than operating on a closed enterprise framework, Progmat is transitioning to a public blockchain architecture while retaining control over compliance and governance. The new network will be deployed as a dedicated Avalanche L1 through AvaCloud and is scheduled for integration into the Progmat platform by the end of June 2026.
From Enterprise Blockchain to Public Infrastructure
Progmat’s move from Corda to Avalanche marks a technical and strategic shift. Enterprise blockchain systems have historically offered strong permissioning and regulatory control but limited interoperability. By adopting a dedicated Avalanche L1, Progmat aims to combine institutional oversight with broader blockchain compatibility.
More than $2 billion in tokenized assets will migrate as part of this transition. These include primarily real estate-backed securities and corporate bonds, which have formed the foundation of Japan’s security token market to date.
The decision signals that public blockchain infrastructure is increasingly being considered suitable for regulated financial instruments at scale.
Progmat’s Role in Japan’s Security Token Market
Progmat occupies a leading position in Japan’s digital securities sector. The platform manages approximately ¥439.6 billion in assets under management and accounts for around 63 percent of cumulative issuance volume and 53.8 percent of total projects nationwide. To date, it has facilitated over ¥216.9 billion in tokenized assets.
Although early growth has centered on real estate and corporate debt, the scope of tokenization in Japan is widening. Industry initiatives are advancing toward tokenized equities, investment trusts, and money market funds. Market projections suggest that Japan’s digital securities sector could surpass ¥1.05 trillion by the end of 2026.
Scaling to that level requires infrastructure capable of handling institutional transaction volumes, regulatory requirements, and long-term system stability.
Why a Dedicated Avalanche L1
The architecture chosen by Progmat is not a general-purpose public network but a dedicated Avalanche Layer 1. This design allows the platform to define its own rules, governance structures, and compliance mechanisms while operating within Avalanche’s broader ecosystem.
Key characteristics of the deployment include:
EVM compatibility, enabling issued security tokens to integrate with Ethereum-based tooling and applications.
Sub-second transaction finality, allowing near-instant settlement compared to traditional multi-day clearing cycles.
Application-specific control, ensuring that regulated entities can maintain required operational standards and oversight.
The structure is intended to support institutional workloads without isolating the platform from global blockchain standards.
Part of a Broader Institutional Pattern
Progmat’s migration is occurring within a wider context of Japanese enterprises adopting Avalanche infrastructure.
TIS Inc. has launched a high-speed Multi-Token Platform on Avalanche through AvaCloud. Toyota Blockchain Lab has explored blockchain-based mobility accounts and programmable vehicle lifecycle concepts. In entertainment, Konami has introduced NFT initiatives on dedicated Avalanche networks. Large-scale consumer programs have also adopted similar models, including Ponta’s Mugen Chain, which supports digital rewards for a user base of roughly 100 million accounts.
Learn more about some of these initiatives:
These deployments illustrate a consistent approach in Japan: integrating blockchain technology into existing institutional systems rather than replacing them outright.
Establishing the Next Phase of Digital Securities Infrastructure
Once completed, the migration will position a substantial share of Japan’s tokenized securities market on a public blockchain framework designed for regulated use. The integration of Avalanche L1 support into the Progmat platform is expected to conclude by the end of June 2026.
The move reflects a gradual standardization of digital asset infrastructure within Japan’s financial system. By combining established capital markets processes with scalable blockchain architecture, Progmat’s transition represents an incremental but significant step in the evolution of regulated digital finance.
Dive into the Avalanche ecosystem today! Download the Core Wallet and unlock a world of seamless DeFi, NFTs, and more.