In a major institutional move, Japan's leading security token platform, Progmat, is migrating over $2 billion in tokenized real-world assets (RWAs) to a dedicated Layer-1 blockchain built on Avalanche. The assets, primarily comprising real estate and corporate bonds, are being moved from the Corda network.
Progmat, originally established by Japan's largest bank, MUFG, and now jointly owned by several major banks, exchanges, and tech giants, commands a 63% share of Japan's cumulative token issuance. The platform has facilitated over ¥216.9 billion ($1.4 billion) in tokenized assets. Avalanche has described this migration as "one of the most significant public blockchain expansions of regulated financial products in the region."
The new dedicated L1 is being deployed using Avalanche's AvaCloud managed service, which allows enterprises to launch and manage their own independent blockchains (subnets). This architecture provides institutional-grade throughput, low predictable fees, and built-in compliance systems. Critically, any security token issued on Progmat's L1 will be instantly compatible with Ethereum and other EVM-based networks, granting Japanese firms access to the global digital asset ecosystem.
This initiative is backed by a consortium of Japan's corporate giants, including financial processing firm TIS Inc. (which processes over $2 trillion in payments), the Toyota Blockchain Lab, video game publisher Konami, and the massive Ponta loyalty program. The migration follows the launch of Japan's first yen-backed stablecoin, JPYC, on Avalanche in August.
Market experts project Japan's tokenized RWA market to reach $7 billion by the end of 2026, with global estimates from McKinsey suggesting the sector could unlock over $2 trillion by 2030.
Concurrently, Avalanche's native token, AVAX, saw a 10% price surge following the announcement. Derivatives data showed Avalanche's Open Interest rising by 18% to $200 million, indicating strong institutional demand. Technical analysis points to a breakout from a wedge consolidation pattern, with a key liquidity cluster near $15 identified as the next potential target for bulls.
