Japan’s largest tokenized securities platform, Progmat, is preparing to migrate more than $2B in tokenized assets from Corda to a dedicated Avalanche Layer 1. Avalanche says the move will bring tokenized real estate-backed securities and corporate bonds onto EVM-compatible infrastructure built for institutional-scale issuance and settlement.
The migration is scheduled to complete by the end of June 2026, marking one of the region’s biggest shifts of regulated financial products onto public blockchain rails, according to the announcement.
Progmat is shifting core issuance infrastructure off Corda
Avalanche says Progmat is preparing a “landmark technical migration” from Corda to a dedicated Avalanche L1. The transition covers more than $2B of tokenized assets, mainly real estate-related products and corporate bonds, and is framed as a step toward more interoperable and programmable capital markets infrastructure.
Avalanche positions Progmat as a key piece of Japan’s onchain finance stack, arguing the platform already sits at the center of domestic security token issuance and is now expanding the scope of tokenized products.
The scale: Progmat dominates Japan’s ST market today
In the post, Avalanche cites Progmat as the domestic leader in Japan’s digital asset market with ¥439.6 billion in AUM. It also says Progmat accounts for about 63% of cumulative issuance volume and 53.8% of total projects in Japan’s security token market, and has facilitated more than ¥216.9 billion in tokenized assets so far.
Avalanche also points to market growth expectations, saying Japan’s digital securities sector is projected to exceed ¥1.05 trillion (over $7B) by the end of 2026, raising the bar for throughput, compliance requirements, and long-term scaling.
This isn’t Avalanche’s first major strategic partnership in Asia. Previously, Fosun Wealth’s FinChain launched the yield-bearing FUSD stablecoin on Avalanche.
Why Avalanche and why a dedicated L1
Avalanche says Progmat will deploy its own Avalanche L1 through AvaCloud, aiming for a “sovereign, compliant environment” that still plugs into public-chain standards.
The announcement highlights three core benefits:
- EVM compatibility, so Progmat-issued tokens can interact with the broader ecosystem and global liquidity standards.
- Sub-2-second finality, positioning settlement as near-instant compared to traditional multi-day workflows.
- Application-specific network control, allowing independent rules and governance aligned with regulated financial entities.
Avalanche frames this as “sovereign infrastructure built on public blockchain foundations,” balancing local compliance needs with global interoperability.
Japan is becoming an institutional blockchain proving ground
The post places Progmat alongside other Japanese enterprise deployments on Avalanche, citing examples such as TIS Inc.’s Multi-Token Platform, Toyota Blockchain Lab experiments, Konami’s NFT platform efforts, and Ponta’s large-scale digital rewards network on a dedicated Avalanche L1.
The broader message: Japan’s approach is less about ripping out legacy systems and more about upgrading them with blockchain components that can operate at national scale.
Why it matters for crypto
- A $2B+ migration of regulated tokenized securities is a real “production” signal for onchain capital markets.
- EVM compatibility pulls Japanese security tokens closer to global tooling standards and potential cross-border liquidity workflows.
- Dedicated L1s are emerging as the compromise model for institutions that want control plus interoperability.
- Faster finality and programmable settlement are the practical advantages TradFi cares about first, not “crypto culture.”
- If this pattern spreads, tokenization growth could come from infrastructure migrations, not just new pilots.
What to watch next
- Delivery milestones toward the end-of-June 2026 integration target.
- Whether Progmat expands beyond real estate and corporate bonds into tokenized equities, trusts, or money market products as suggested.
- Early signs of secondary-market activity and settlement flows once assets are live on the new Avalanche L1.
- Additional Japanese regulated issuers choosing dedicated L1 infrastructure rather than permissioned-only rails.
- Any disclosed standards for compliance, identity, or transfer restrictions on the new chain.
Source: Avax.network blog