Progmat, a former Mitsubishi UFJ Trust and Banking venture, announced that it will migrate all live projects to Avalanche Layer 1 without disrupting the operations of its financial institutions.
The company has transferred over 452 billion yen (over $3 billion) of regulated real estate and live bond tokens to public chain rails.
Japanese giants move to Avalanche
Avalanche confirmed the move in a July 10 blog post.
While the value of assets may grab the headlines, the most important fact is where those assets are stored. Corda and Avalanche could not be more different. R3 built Corda as a permissioned ledger for a select group of authorized institutions, whereas Avalanche is a public chain network.
A move of this magnitude is certainly unprecedented. Most regulated issuers had avoided it up until this point.
Securities will continue to be regulated. While the banks, securities companies, and trust companies that handle these tokens remain under strict surveillance, tokens cannot be traded freely in public wallets. The moving part is the settlement layer where the securities reside.
The move was part of what Progmat calls “Project Keystone.” Project Keystone is a system redesign that allows business functions to access multiple blockchains. An intermediary layer has been added between the ledger and its applications, allowing it to connect with other chains without having to build issuing, ownership, and transfer processes from scratch.
This move converted Progmat’s smart contracts from Corda to Solidity and made the token EVM compatible.
Progmat added that rights transfer is three to five times faster with the new system than with the old system, with transactions now reaching finality within two seconds.
However, the company releases these numbers after its own internal testing and has not undergone independent review. Also note that while finality refers to a completed on-chain transaction, it does not take into account any banking or administrative procedures surrounding the transaction, and Progmat does not publish transaction data to that effect.
Why does timing matter?
Progmat handles the majority of the Japanese security token market (53.4% of transactions based on number of transactions, 64.6% based on total issuance amount). Until this point, all this was recorded in private ledgers, and only domestic institutions could learn about such huge activities.
The move comes amidst a major policy shift in Japan’s cryptocurrency space. What the Japanese government wants to create is Crypto ETFs are legal and reclassifying digital assets as financial instruments. The announcement was made by Finance Minister Satsuki Katayama last Thursday.
Progmat, together with its securities branch; meta planet, and stablecoin issuer JPYC are part of a deeper study into digital credit backed by Bitcoin.
Meanwhile, this represents an organizational win for Avalanche, whose AVAX token is trading at $6.83, giving it a market cap of $2.86 billion.
What else is Progmat working on?
Progmat shows no signs of slowing down and is already moving on to its next goal. In May 2026, the company established a working group within the Digital Asset Co-Creation Consortium to consider putting Japanese government bonds on a public blockchain and combining tokenized government bonds with stablecoin-based repo transactions to enable 24/7 trading and same-day settlement.
The list includes asset management companies, banks, and BlackRock Japan, and public chains under consideration include Avalanche. Avalanche said the group plans to issue a report in October 2026 and aims to begin commercialization projects by the end of the year.
