Progmat, a Japan-based digital asset platform backed by Mitsubishi UFJ Financial Group (MUFG), has completed the migration of infrastructure supporting approximately $3 billion in security tokens to the Avalanche Layer 1 blockchain. The migration reflects the total notional value of security tokens already issued or managed through Progmat's platform, including tokenized corporate bonds and real estate investment products introduced by Japanese financial institutions since 2022. The move enables Progmat to leverage Avalanche's high transaction throughput, lower costs, and specialized subnet architecture for customizable permissioned blockchain environments. Japan's regulatory framework requires financial institutions to maintain clear segregation of client assets while complying with the Financial Instruments and Exchange Act, and Avalanche's subnet technology allows Progmat to operate an isolated and auditable ledger while preserving interoperability with the wider Avalanche ecosystem.
Progmat Migrates $3 Billion Security Token Infrastructure to Avalanche L1
The migration involved moving Progmat's blockchain infrastructure from Corda 5 to Avalanche L1, making all security token projects EVM-compatible. The portfolio totaling JPY 452 billion (approximately $3 billion) includes tokenized corporate bonds and real estate investment products that have been issued through the platform since 2022. The blockchain infrastructure has been moved to Avalanche, while the underlying financial assets remain unchanged. Security tokens represent ownership of traditional financial assets, including bonds, equities, and real estate, in digital form on a blockchain.
The company's decision was described as a strategic technology upgrade rather than a response to new regulatory demands. Japan's Financial Services Agency has already established a legal framework governing security tokens, and Progmat's platform has been designed to operate within those regulations.
Avalanche Subnet Architecture Supports Japan's Financial Compliance Requirements
The migration enables Progmat to combine Avalanche's public blockchain security with a dedicated permissioned environment, helping institutional clients meet Japan's strict regulatory and compliance requirements. Avalanche's subnet technology allows Progmat to operate an isolated and auditable ledger while preserving interoperability with the wider Avalanche ecosystem. The subnet architecture provides the flexibility to build customized permissioned blockchain environments while leveraging the broader network's security and interoperability.
Progmat selected Avalanche primarily because its subnet architecture provides the flexibility to build customized permissioned blockchain environments while leveraging the broader network's security and interoperability. The migration involves only the platform's supporting infrastructure, while the security tokens themselves and the assets they represent continue to remain intact.
Transaction Speed Increases 3-5x Following Blockchain Migration
Rights transfers are 3-5x faster following the migration, settling in under 2 seconds. The migration is expected to improve operational efficiency, support future scalability, and lower infrastructure costs for institutional participants using the platform. All security token projects totaling JPY 452 billion are now EVM-compatible, combining institutional requirements with public-chain composability.
The development reflects growing institutional interest in hybrid blockchain models that combine elements of public and permissioned networks. Unlike many tokenization initiatives that remain in experimental or pilot stages, Progmat's platform manages regulated financial assets with tangible economic value. The project highlights how real-world asset tokenization is evolving from limited pilot programs into large-scale production deployments, with Japan emerging as a model for integrating blockchain technology into regulated financial markets.
FAQ
What did Progmat migrate to Avalanche blockchain?
Progmat completed the migration of infrastructure supporting approximately $3 billion in security tokens to the Avalanche Layer 1 blockchain. The portfolio includes tokenized corporate bonds and real estate investment products introduced by Japanese financial institutions since 2022, with the blockchain infrastructure moving from Corda 5 to Avalanche L1.
Why did Progmat select Avalanche for its security token platform?
Progmat selected Avalanche primarily because its subnet architecture provides the flexibility to build customized permissioned blockchain environments while leveraging the broader network's security and interoperability. The subnet technology allows Progmat to operate an isolated and auditable ledger while preserving interoperability with the wider Avalanche ecosystem, meeting Japan's Financial Instruments and Exchange Act compliance requirements.
How much faster are transactions after Progmat's migration to Avalanche?
Rights transfers are 3-5x faster following the migration to Avalanche, settling in under 2 seconds. All security token projects totaling JPY 452 billion are now EVM-compatible, combining institutional requirements with public-chain composability.
