Japan's Largest Security Token Platform Progmat Completes Migration of $2 Billion in Assets to Avalanche Blockchain

Progmat, the dominant player in the Japanese digital securities market, has completed the task of migrating over $2 billion (approximately 439.6 billion yen) in tokenized assets to a dedicated Avalanche Layer 1 network. This transition marks the largest-ever instance of a platform controlling about two-thirds of the Japanese security token market moving from private Distributed Ledger Technology (DLT) to a public permissioned ecosystem. As of July 13, 2026, Progmat is setting a new standard for institutional-grade digital asset infrastructure through this migration.

Progmat is a security token infrastructure developer founded by MUFG (Mitsubishi UFJ Financial Group), Japan's largest bank, and currently accounts for 64.6% of the cumulative token issuance value in Japan. The migration included real estate assets and corporate bonds, suggesting a significant shift in how the Japanese financial sector applies blockchain technology to practical operations. Progmat's technical transition was successfully completed by the end of June, following the schedule planned since its initial announcement in February 2026.

This technical migration is the most symbolic example showing that infrastructure for institutional-grade Real World Asset (RWA) tokenization is evolving from private environments to more flexible public permissioned networks.

From a technical perspective, this move signifies a pivot from the previously used R3 Corda system to Avalanche's dedicated Layer 1 infrastructure. Progmat made this decision to secure more efficient asset management and scalability, which is the result of technical validation conducted throughout the first half of 2026. The Avalanche network met the strict requirements of Japanese financial institutions by providing high processing speeds and customized subnet capabilities.

A Landmark Migration for the Japanese Financial Market

Progmat was initiated under the leadership of MUFG but is currently operated as a collaborative entity co-owned by several major financial institutions, exchanges, and technology companies. This strong institutional background played a decisive role in the Avalanche network gaining the trust of institutional finance within Japan. This migration is interpreted as a strategic move to go beyond a simple platform shift, increasing the liquidity of digital securities in Japan and improving accessibility for global investors.

• Total value of assets migrated: Over $2 billion (approx. 439.6 billion yen)
• Market share: An overwhelming 64.6% share within the Japanese Security Token (ST) market
• Major asset types: Tokenized real estate and corporate-issued bonds
• Technical foundation: Transition from R3 Corda to an Avalanche-dedicated Layer 1 (Evergreen)

Changes in the regulatory environment of the Japan Financial Services Agency (JFSA) also served as an important background for this migration. In 2025, the Cabinet Office of Japan resolved to reclassify crypto-assets as financial assets that contribute to the asset formation of citizens and to consider more relaxed tax benefits. This policy trend had a positive impact on institutions embracing public blockchain infrastructure, and Progmat's move is cited as a best practice combining regulatory compliance with technological innovation.

From the perspective of the Avalanche ecosystem, this achievement served as an opportunity to solidify its position as the preferred network for institutional-grade RWAs. The Avalanche Foundation emphasized that this project is one of the most significant public blockchain deployment cases for capital markets. Aiming for completion by June 2026, this project is expected to serve as an important blueprint for future attempts by global financial institutions to connect private assets with the efficiency of public blockchains.

The Future of Digital Securities and Future Outlook

The Avalanche-dedicated Layer 1 introduced this time was designed to meet the strict regulatory compliance requirements of financial institutions. The 'public permissioned' model, which combines the transparency of public blockchains with the control of private networks, is setting a new standard for other financial platforms in Japan. This is expected to significantly improve the interoperability of the digital asset market in Japan in the future.

Experts believe that Progmat's move will significantly improve the liquidity of the Japanese digital asset market beyond a simple technical transfer. By moving away from existing closed systems to the highly interoperable Avalanche, the possibility of linking with various decentralized finance (DeFi) protocols has also opened up. This will provide Japanese investors with opportunities to access a wider variety of digital financial products.

As of July 2026, the scale of security token issuance in Japan continues to grow, and Progmat's successful migration is expected to accelerate this growth. This is interpreted as an important signal for the acceleration of real-world asset tokenization across the Asian market. Progmat plans to further solidify its market dominance by tokenizing a wider variety of asset classes based on the Avalanche infrastructure in the future.