Progmat completed the migration of ¥45.2 billion in tokenized securities from R3 Corda 5 to Avalanche L1 on July 10 under Project Keystone, according to ABMedia. The move puts a large Japanese security token platform on public blockchain infrastructure rather than a private distributed ledger.
Project Keystone moved real estate and corporate bond tokens
Project Keystone was announced publicly in February 2026 and completed on July 10. The migrated assets were mainly tokenized real estate and tokenized corporate bonds, which the report identified as the two leading product types in Japan’s STO market over the past two years.
ABMedia said the Avalanche L1 setup delivers transaction finality in less than two seconds, processes transactions 3-5 times faster than the previous Corda environment, and supports EVM compatibility. The report said that last point matters for overseas institutions and integration with DeFi protocols.
Why Progmat picked Avalanche L1
Progmat chose Avalanche L1 rather than Avalanche C-Chain in order to keep independent governance rules while operating on public blockchain infrastructure.
An Avalanche blog post cited in the report described three advantages: a sovereign operating environment designed for institutional-grade compliance, governance rules independent from the main chain, and global interoperability while remaining on public blockchain rails. Under that model, Japanese tokenized assets can access global liquidity within the same protocol family without being bound by changes to other L1 protocols.
More than 40 institutions joined the JGB and on-chain repo group
On May 8, 2026, Progmat set up the Tokenized Government Bonds and On-Chain Repo Working Group. The source said the group includes more than 40 institutions, among them BlackRock Japan, MUFG Bank, Mizuho Bank, Sumitomo Mitsui Banking Corporation, Daiwa Securities, SBI Securities, Nomura Holdings, State Street Trust and Banking, and Tokio Marine Holdings.
The group is studying a structure in which tokenized Japanese government bonds, or JGBs, are used as collateral and stablecoins serve as the cash payment leg to enable same-day settlement for repo transactions.
Commercial launch targeted before the end of 2026
The working group plans to submit a report in October 2026 and launch commercially before the end of the year. If that schedule is met, Progmat estimates Japan’s tokenized securities market will exceed ¥1.05 trillion.
The Avalanche blog also listed Japanese projects already deployed on its platform, including TIS’s multi-token payment platform, a mobility project by Toyota Blockchain Lab, Konami’s NFT platform, and the Ponta loyalty program with 100 million members through Mugen Chain.
