Japan's dominant digital asset issuance and management platform, Progmat, has successfully completed its migration to the Avalanche blockchain, moving over ¥452 billion (approximately $2.7 billion) in tokenized assets from a private Corda 5-based ledger to a dedicated public Avalanche Layer 1.
According to a blog post dated July 10, the transition was not merely a ledger swap but a complete architectural redesign that decouples the platform from any single blockchain, enabling future multi-chain interoperability. All existing smart contracts were ported to the Ethereum Virtual Machine (EVM) without altering their behavior or specifications, ensuring uninterrupted operations for financial institutions throughout the process.
“The most tangible result: rights transfer processing is now approximately 3 to 5 times faster than the pre-migration environment,” the blog states, adding that transaction finality now occurs in under two seconds.
The migration, initially announced in February, concluded on schedule with zero disruption to users. Progmat, originally developed within Mitsubishi UFJ Trust and Banking (MUFG)—Japan’s largest bank—was spun out as an independent company in October 2023. It is backed by major Japanese financial players including Mizuho Financial Group, the Tokyo Stock Exchange, and SBI Holdings.
Progmat currently commands roughly 53% of Japan’s security token market share and accounts for 64.6% of total issuance value, primarily comprising tokenized real estate and corporate bonds. By shifting from a closed, domestic-only system to a public, EVM-compatible chain like Avalanche, Progmat’s assets are now more accessible to global participants and integrated into the broader blockchain ecosystem.
In May, Progmat launched the Tokenized Government Bonds & On-Chain Repo Working Group with asset managers, banks, and securities firms to explore the tokenization of Japanese Government Bonds (JGBs). The group is examining the implications of 24/7 trading and same-day (T+0) settlement for JGBs.
Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry.