Progmat discontinues Corda, Avalanche wins over $2 billion in Japanese real world asset trading

Japan’s largest safety token platform “Progmat” On the transfer Over $2 billion of tokenized real-world belongings (RWA) can be saved on a devoted ledger from the Corda distributed ledger. avalanche Layer 1 (L1) blockchain.

Belongings embody tokenized actual property and company bonds. The transition, code-named “Undertaking Keystone,” is predicted to start in fall 2025 and be accomplished by the top of June 2026.

What’s Progmat? Why is it essential?

Progmat is Japan’s main safety token (ST) platform with roughly 439.6 billion yen in belongings underneath administration. At present, it accounts for about 63% of the cumulative issuance in Japan’s nationwide safety token market and 53.8% of the entire tasks. The platform has facilitated the tokenization of over 216.9 billion yen of belongings thus far, together with mortgage-backed securities and tokenized company bonds.

For these unfamiliar, safety tokens are blockchain-based representations of regulated monetary devices corresponding to bonds, actual property shares, and equities. They perform like conventional securities, however settle and switch cash on the blockchain fairly than via conventional clearinghouses.

Japan’s safety token market is rising quickly. Trade forecasts predict that by the top of 2026, the sector can be value greater than 1.5 trillion yen (roughly $7 billion) from its present measurement. This development is propelling platforms like Progmat towards infrastructure able to dealing with organizational workloads on a nationwide degree.

Why is Progmat leaving Corda?

Developed by R3, Corda is purpose-built for permissioned environments, making it a preferred alternative for enterprise blockchain tasks in monetary companies. Progmat accomplished its first full migration to Corda 5 SaaS in Asia in October 2024. Lower than 18 months later, Corda can be utterly retired.

Progmat CEO Tatsuya Saito posted on X as @tatsu_s1203 and immediately defined why:

“We plan emigrate Progmat ST from Corda5 to Avalanche and make all ST transactions EVM suitable and permissionless over time.”

EVM stands for Ethereum digital machine. EVM compatibility refers to sensible contracts, developer instruments, DeFi Protocols constructed for Ethereum can work together with Progmat’s platform. That wasn’t doable with Corda. This transfer opens Progmat’s regulated safety tokens to the broader Ethereum ecosystem, together with abroad institutional buyers and decentralized finance purposes.

Three technical components led to this resolution.

• Avalanche L1 structure: Permits Progmat to manage validator entry, contract deployment privileges, and person permissions with out taking the chain offline. That degree of customization is essential when working underneath Japan’s Monetary Devices and Alternate Act.
• Interchain Messaging (ICM): Avalanche’s native cross-chain communication layer permits belongings to maneuver between chains with out counting on a single bridge supplier.
• Finality of lower than 2 seconds: Transactions are settled nearly immediately, in comparison with multi-day settlement intervals in conventional finance.

How do cross-chain funds work?

Migration is greater than only a chain swap. Progmat is the primary to commercialize cross-chain fee capabilities masking two particular use instances.

The primary is supply versus fee (DvP) between safety tokens. secure coin. DvP is an ordinary settlement mechanism the place the switch of securities and their fee happen concurrently, eliminating counterparty danger. Progmat is concentrating on this from October 2021.

The second is Versus Funds (PvP), funds between stablecoins issued throughout completely different authorized jurisdictions, enabling cross-border transactions between, for instance, Japanese and European stablecoin techniques.

These capabilities are constructed on high of IBC/LCP via a knowledge chain together with Avalanche’s ICM. The usage of two protocols as an alternative of 1 is a deliberate option to keep away from dependence on a single bridge supplier. Progmat has partnered with Ava Labs and Datachain to supply a whole cross-chain stack.

Undertaking Trinity and Undertaking Pax

Two inside tasks help this work. Undertaking Trinity, introduced in August 2025, moved DvP funds in direction of business deployment. Undertaking Pax, which has been operating since September 2024, has constructed cross-border stablecoin infrastructure with establishments in Europe, South Korea, and Japan. Each tasks are at the moment built-in underneath Avalanche migration.

What does EVM compatibility truly allow?

For readers conversant in DeFi and Ethereum growth, the implications are sensible and concrete.

Safety token issuers could have entry to all of Ethereum’s sensible contract libraries, growth instruments, and DeFi protocols on Progmat ST. This implies overseas institutional buyers can entry Japanese tokenized securities via acquainted infrastructure. DeFi platforms operating on the EVM chain can join with regulated ST merchandise. Moreover, stablecoin tasks can settle transactions immediately towards Progmat belongings.

The Japanese safety token market was constructed on a devoted permission chain from the start. Main monetary establishments licensed underneath Japan’s monetary legal guidelines have constructed a custody-based mannequin primarily based on that construction. The compliance stack stays intact underneath Avalanche migration. What modifications is the chain layer under.

Is Avalanche already established in Japan?

Avalanche has a confirmed observe document in all industries apart from finance in Japan. TIS Inc., which processes about half of Japan’s bank card transaction quantity, runs a multi-token platform on AvaCloud, Avalanche’s managed L1 service.

Toyota Blockchain Lab is used Avalanche explores a programmable automobile lifecycle. Konami has launched a devoted NFT platform on Avalanche L1. Ponta, a loyalty program with roughly 100 million person accounts, points digital rewards on a devoted Avalanche L1 known as Mugen Chain.

These developments present a sample. Japanese corporations in finance, automotive, gaming, and retail select Avalanche after they want a steadiness between native regulatory compliance and entry to international blockchain requirements.

Progmat’s transfer matches that sample, extending into capital markets on a scale by no means earlier than seen within the area.

conclusion

Progmat’s transition to Avalanche represents a concrete change in the best way Japan’s regulated monetary infrastructure is being restructured. The platform controls a big portion of the home safety token market, handles institutional-level compliance necessities, and is at the moment connecting its infrastructure to the worldwide EVM ecosystem via a devoted L1 with sub-second finality, customizable permissions, and multi-protocol cross-chain funds. The know-how integration is predicted to be accomplished by June 2026.

useful resource

1. Avalanche of X:Posted (February 2026)

2. Weblog put up by Avalanche 1: Progmat strikes over $2 billion in tokenized securities to Avalanche

3. Weblog put up by Avalanche 2: The place Custom Meets Innovation: Avalanche’s Increasing Affect in Japan