Progmat Moves $2B in Tokenized Securities to Avalanche
Progmat, which controls 64.6% of Japan's security token issuance market by value, has migrated over $2 billion in tokenized securities to the Avalanche blockchain. The move signals growing institutional adoption of RWA tokenization in Japan.
Yuri Konnov
The asset base transferred spans tokenized real estate assets and corporate bonds, with the platform carrying ¥439.6 billion in assets under management at the time of the Datachain partnership announcement. Datachain, which co-developed the migration architecture alongside Ava Labs, described the move as the first Avalanche L1 implementation of this kind in Asia. The shift renders all migrated digital securities EVM-compatible, opening them to the broader ecosystem of Ethereum-standard tooling, wallets, and settlement infrastructure.
Progmat was originally developed within Mitsubishi UFJ Trust and Banking before being spun out as an independent company. Ledger Insights reported that the platform counts Mizuho, the Tokyo Stock Exchange operator JPX, SBI, and NTT Data among its institutional backers, and that the Avalanche migration was announced as a formal alliance with Ava Labs. The platform accounts for approximately 53.8% of total projects in Japan's national security token market and has facilitated more than ¥216.9 billion in tokenized assets to date.
On the technical side, Progmat's internal tests indicate that rights transfers on the new infrastructure run three to five times faster than on Corda, with Avalanche transactions reaching finality in under two seconds. The architecture was redesigned to eliminate blockchain-specific dependencies, converting smart contracts from Java-based Corda code to Solidity-based EVM contracts and deploying the dedicated L1 through AvaCloud. The Nansen Q1 2026 Report, which flagged the migration as a key development for the Avalanche ecosystem, also noted that the Avalanche Foundation had separately launched the Retro9000 C-Chain Round, a new phase of its $40 million grant program, during the same quarter.
The migration occurs against a backdrop of rapid growth in Japan's domestic security token market. Total outstanding domestic security token issuances are projected to exceed ¥583.1 billion in 2025 and grow to more than ¥1.0531 trillion in 2026, according to Datachain's announcement materials. The Avalanche Official Blog cited a sector projection exceeding ¥1.05 trillion by end-2026, consistent with those figures. Tracee Briefings noted that Japan's government bond repo market runs at roughly $1.6 trillion in daily outstanding volume, providing context for the scale of on-chain settlement infrastructure that Progmat's working groups are now targeting — including a Tokenized JGB and On-Chain Repo Working Group launched in May 2026 with more than 40 participating institutions.
The Avalanche Official Blog described Progmat as "the essential infrastructure powering the nation's shift toward onchain finance" and cited the platform's ¥439.6 billion AUM as evidence of its domestic dominance. The blog also characterised the Japanese digital securities sector as one expected to exceed ¥1.05 trillion by the end of 2026, though that figure is a market projection rather than a measured outcome.
Several material details remain undisclosed. The announcement and supporting materials do not specify which individual real estate assets or corporate bond issuers have been migrated, nor do they provide post-migration transaction volume data or peak-load performance benchmarks under live institutional conditions. Progmat has not published the legal mechanics governing token continuity across the ledger transition — specifically, whether existing investor agreements required amendment or regulatory re-notification under Japan's Financial Instruments and Exchange Act. The operational impact of the Tokenized JGB and On-Chain Repo Working Group on Progmat's Avalanche L1 infrastructure has not been quantified, and no settlement data from the new chain has been made public.
The immediate concrete effect of the migration is that more than ¥452 billion in tokenized securities previously held on a permissioned enterprise ledger now reside on EVM-compatible public blockchain infrastructure, making them technically accessible to a wider range of settlement and custody systems. The announcement does not establish that any new issuances have been launched on the Avalanche L1, that secondary-market liquidity has improved for existing token holders, or that cross-border settlement with non-Japanese counterparties has commenced.
