Progmat, Japan’s largest platform for issuing and managing security tokens, has completed the migration of all tokenized assets under management worth more than JPY 452 billion, or about $2.7 billion, to a dedicated Avalanche Layer 1. The assets were moved from a permissioned chain built on Corda 5, with the company saying the transition was completed on schedule after it was announced in February and caused no disruption to financial institutions using the platform. Progmat said the new setup no longer depends on a single blockchain and is designed to support future multichain expansion. All smart contracts have been moved into an EVM environment while keeping existing functions unchanged. According to the company, rights transfer processing is now 3 to 5 times faster, and final transaction confirmation has been reduced to under two seconds. Originally incubated by Mitsubishi UFJ Trust and Banking, part of MUFG, Progmat began operating independently in 2023 and is backed by major Japanese financial institutions including Mizuho Bank, the Tokyo Stock Exchange, and SBI. The platform says it holds a 53% share of Japan’s security token market and accounts for 64.6% of total issuance, covering most tokenized real estate and corporate bond projects in the country.
Progmat, Japan’s largest platform for issuing and managing security tokens, has completed the migration of all tokenized assets under management worth more than JPY 452 billion, or about $2.7 billion, to a dedicated Avalanche Layer 1.
The assets were moved from a permissioned chain based on Corda 5. Progmat said the migration was announced in February this year and has now been completed on schedule without disrupting normal operations at financial institutions.
Dedicated Avalanche Layer 1 replaces the previous setup
According to Progmat, the new architecture no longer relies on a single blockchain and can support future multichain expansion. All smart contracts have been migrated to an EVM environment while keeping existing functionality unchanged.
The company said processing for asset rights transfers is now 3 to 5 times faster, and final transaction confirmation has been cut to less than two seconds.
Platform background and market position
Progmat was originally incubated by Mitsubishi UFJ Trust and Banking, part of MUFG, Japan’s largest bank, and began operating independently in 2023. It is currently backed by major Japanese financial institutions including Mizuho Bank, the Tokyo Stock Exchange, and SBI.
Progmat said it accounts for 53% of Japan’s security token market and 64.6% of total security token issuance, covering most tokenized real estate and corporate bond projects in the country.
Government bond tokenization working group launched in May
In May this year, Progmat also set up a working group on tokenized Japanese government bonds and on-chain repo. The group includes asset managers, banks, and securities firms to study tokenized Japanese government bonds and examine use cases such as 24/7 trading and T+0 real-time settlement.
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