Japan's dominant security token platform, Progmat, has successfully migrated its entire infrastructure from a private Corda 5 ledger to a dedicated public Avalanche Layer 1, moving over ¥452 billion (approximately $2.7 billion) in tokenized assets. According to a blog post, the transition was completed on schedule with zero disruption to the financial institutions using the platform.
Progmat redesigned its underlying architecture to be blockchain-agnostic, enabling future multi-chain capabilities. All existing smart contracts were ported to the Ethereum Virtual Machine (EVM) without altering any live project's behavior. The most immediate benefit: rights transfer processing is now 3 to 5 times faster, with finality achieved in under two seconds. This represents a significant performance leap over the previous environment.
Progmat, originally developed inside Japan's largest bank, Mitsubishi UFJ Trust and Banking (MUFG), and spun out as an independent entity in October 2023, commands roughly 53% of the country’s security token market and 64.6% of total issuance value. Its backers include Mizuho, the Tokyo Stock Exchange, and SBI. By moving from a closed, domestic-only system to an EVM-compatible public chain, Progmat’s tokenized real estate and corporate bonds are now more accessible to global participants and interoperable with the wider blockchain ecosystem.
Additionally, Progmat has formed a Tokenized Government Bonds & On-Chain Repo Working Group to explore tokenized Japanese Government Bonds (JGBs), studying the implications of 24/7 trading and same-day (T+0) settlement.
