Progmat, Japan’s largest security token platform, completed the migration of more than ¥452 billion (roughly $2.8 billion) in tokenized bonds, real estate, and structured products from the Corda 5 ledger to a dedicated Avalanche Layer 1 blockchain, according to an Avalanche blog post dated July 10, 2026.
What Happened and Why It Matters
Progmat was originally developed inside Mitsubishi UFJ Trust and Banking before spinning out as an independent company in October 2023, and holds 53.4% of Japan’s security token market by number of deals and 64.6% by total issuance value. The platform is backed by major Japanese institutions including Mizuho, the Tokyo Stock Exchange, and SBI.
The migration, executed under the codename Project Keystone and first announced in February, ported existing smart contracts from Java, used on Corda, to Solidity, the standard language for EVM-compatible chains.
The change delivered rights-transfer processing three to five times faster than the prior environment, with transaction finality under two seconds, according to Avalanche. AvaCloud, which provides managed infrastructure for the migration, secured SOC 1 and SOC 2 Type II attestations to meet financial institution requirements.
Avalanche Layer-1s are application-specific chains with their own chosen validator sets, which can themselves be permissioned, meaning this is a shift from one permissioned environment to another that offers a pathway toward public-chain interoperability, not a leap to fully open access.
The announcement does not disclose who controls the validators at launch. Progmat itself has confirmed the underlying security tokens remain restricted and are not accessible through public crypto wallets.
What Comes Next
Progmat launched a Tokenized Government Bonds and On-Chain Repo Working Group in May, including BlackRock Japan and Avalanche among its members, to study how digital Japanese Government Bonds could support 24/7 trading and same-day settlement in institutional repo transactions.
The group plans to publish findings in October 2026, with a pilot targeted before year-end. Progmat is conducting separate research into Bitcoin-backed digital credit products with Metaplanet and JPYC, though that work remains under review, with no product issued or terms finalized.
For broader context on how institutional capital is moving into on-chain finance, our coverage of DeFi adoption growth tracks similar trends across other networks, and our coverage of Nasdaq’s tokenized securities push with the SEC covers a parallel effort underway in the US market.
What this means for you: this migration reflects institutional tokenization infrastructure maturing in production, not a retail-accessible development. The underlying security tokens remain restricted, so the relevant signal for investors is Avalanche’s growing footprint in regulated real-world asset infrastructure, alongside BlackRock’s roughly $900 million BUIDL fund and nearly $2.1 billion in total tokenized real-world assets now on the network, rather than any new way to directly access Japanese security tokens.
