Japan’s largest security token issuance and management platform, Progmat, has completed its migration to Avalanche, moving all tokenized assets under management worth more than 452 billion yen, or about $2.7 billion, from a Corda 5-based permissioned chain to a dedicated Avalanche Layer1. The company said the migration was first announced in February and finished on schedule without disrupting normal operations at financial institutions. Under the new setup, Progmat said it no longer relies on a single blockchain and can support future multichain expansion. All smart contracts have been moved into an EVM environment while keeping existing functions unchanged. According to the platform, processing for asset rights transfers is now 3 to 5 times faster, and final transaction confirmation has been cut to under two seconds. Progmat was originally incubated by Mitsubishi UFJ Trust and Banking, part of MUFG, and began operating independently in 2023. It is backed by major Japanese financial institutions including Mizuho Bank, the Tokyo Stock Exchange, and SBI. The company also said it formed a working group in May to study tokenized Japanese government bonds and onchain repo, including 24/7 trading and T+0 real-time settlement.
Progmat, Japan’s largest platform for issuing and managing security tokens, has completed its migration to Avalanche, moving all tokenized assets under management worth more than 452 billion yen, or about $2.7 billion, from a Corda 5-based permissioned chain to a dedicated Avalanche Layer1.
The migration was announced in February and has now been completed on schedule. Progmat said the process did not affect normal operations at financial institutions.
Shift to an EVM environment
Progmat said its new architecture no longer depends on a single blockchain and is built to support future multichain expansion. All smart contracts have been migrated to an EVM environment while keeping existing functions unchanged. The company said processing for asset rights transfers is now 3 to 5 times faster, and final transaction confirmation has been reduced to under two seconds.
Platform background and market share
Progmat was originally incubated by Mitsubishi UFJ Trust and Banking, part of MUFG, and began operating independently in 2023. It is currently backed by major Japanese financial institutions including Mizuho Bank, the Tokyo Stock Exchange, and SBI.
According to the figures cited, Progmat holds a 53% share of Japan’s security token market and accounts for 64.6% of total security token issuance, covering most tokenized real estate and corporate bond projects.
Working group on tokenized JGBs and onchain repo
In May, Progmat also set up a working group on the tokenization of Japanese government bonds and onchain repo. The group brings together asset managers, banks, and securities firms to study tokenized JGBs and examine use cases including 24/7 trading and T+0 real-time settlement.
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