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

Japan’s largest security token platform “Progmat” On the move Over $2 billion of tokenized real-world assets (RWA) will be stored on a dedicated ledger from the Corda distributed ledger. avalanche Layer 1 (L1) blockchain.

Assets include tokenized real estate and corporate bonds. The transition, code-named “Project Keystone,” is expected to begin in fall 2025 and be completed by the end of June 2026.

What is Progmat? Why is it important?

Progmat is Japan’s leading security token (ST) platform with approximately 439.6 billion yen in assets under management. Currently, it accounts for approximately 63% of the cumulative issuance in Japan’s national security token market and 53.8% of the total projects. The platform has facilitated the tokenization of over 216.9 billion yen of assets to date, including mortgage-backed securities and tokenized corporate bonds.

For those unfamiliar, security tokens are blockchain-based representations of regulated financial instruments such as bonds, real estate stocks, and equities. They function like traditional securities, but settle and transfer money on the blockchain rather than through traditional clearinghouses.

Japan’s security token market is growing rapidly. Industry forecasts predict that by the end of 2026, the sector will be worth more than 1.5 trillion yen (approximately $7 billion) from its current size. This growth is propelling platforms like Progmat toward infrastructure capable of handling organizational workloads on a national level.

Why is Progmat leaving Corda?

Developed by R3, Corda is purpose-built for permissioned environments, making it a popular choice for enterprise blockchain projects in financial services. Progmat completed its first full migration to Corda 5 SaaS in Asia in October 2024. Less than 18 months later, Corda will be completely retired.

Progmat CEO Tatsuya Saito posted on X as @tatsu_s1203 and directly explained why:

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

EVM stands for Ethereum virtual machine. EVM compatibility refers to smart contracts, developer tools, DeFi Protocols built for Ethereum can interact with Progmat’s platform. That wasn’t possible with Corda. This move opens Progmat’s regulated security tokens to the broader Ethereum ecosystem, including overseas institutional investors and decentralized finance applications.

Three technical factors led to this decision.

• Avalanche L1 architecture: Allows Progmat to control validator access, contract deployment privileges, and user permissions without taking the chain offline. That level of customization is important when operating under Japan’s Financial Instruments and Exchange Act.
• Interchain Messaging (ICM): Avalanche’s native cross-chain communication layer allows assets to move between chains without relying on a single bridge provider.
• Finality of less than 2 seconds: Transactions are settled almost instantly, compared to multi-day settlement periods in traditional finance.

How do cross-chain payments work?

Migration is more than just a chain swap. Progmat is the first to commercialize cross-chain payment capabilities covering two specific use cases.

The first is delivery versus payment (DvP) between security tokens. stable coin. DvP is a standard settlement mechanism where the transfer of securities and their payment occur simultaneously, eliminating counterparty risk. Progmat is targeting this from October 2021.

The second is Versus Payments (PvP), payments between stablecoins issued across different legal jurisdictions, enabling cross-border transactions between, for example, Japanese and European stablecoin systems.

These capabilities are built on top of IBC/LCP through a data chain in combination with Avalanche’s ICM. The use of two protocols instead of one is a deliberate choice to avoid dependence on a single bridge provider. Progmat has partnered with Ava Labs and Datachain to offer a complete cross-chain stack.

Project Trinity and Project Pax

Two internal projects support this work. Project Trinity, announced in August 2025, moved DvP payments towards commercial deployment. Project Pax, which has been running since September 2024, has built cross-border stablecoin infrastructure with institutions in Europe, South Korea, and Japan. Both projects are currently integrated under Avalanche migration.

What does EVM compatibility actually enable?

For readers familiar with DeFi and Ethereum development, the implications are practical and concrete.

Security token issuers will have access to all of Ethereum’s smart contract libraries, development tools, and DeFi protocols on Progmat ST. This means foreign institutional investors can access Japanese tokenized securities through familiar infrastructure. DeFi platforms running on the EVM chain can connect with regulated ST products. Additionally, stablecoin projects can settle transactions directly against Progmat assets.

The Japanese security token market was built on a dedicated permission chain from the beginning. Major financial institutions licensed under Japan’s financial laws have built a custody-based model based on that structure. The compliance stack remains intact under Avalanche migration. What changes is the chain layer below.

Is Avalanche already established in Japan?

Avalanche has a proven track record in all industries other than finance in Japan. TIS Inc., which processes about half of Japan’s credit card transaction volume, runs a multi-token platform on AvaCloud, Avalanche’s managed L1 service.

Toyota Blockchain Lab is used Avalanche explores a programmable vehicle lifecycle. Konami has launched a dedicated NFT platform on Avalanche L1. Ponta, a loyalty program with approximately 100 million user accounts, issues digital rewards on a dedicated Avalanche L1 called Mugen Chain.

These developments show a pattern. Japanese companies in finance, automotive, gaming, and retail choose Avalanche when they need a balance between local regulatory compliance and access to global blockchain standards.

Progmat’s move fits that pattern, extending into capital markets on a scale never before seen in the region.

conclusion

Progmat’s transition to Avalanche represents a concrete change in the way Japan’s regulated financial infrastructure is being restructured. The platform controls a large portion of the domestic security token market, handles institutional-level compliance requirements, and is currently connecting its infrastructure to the global EVM ecosystem through a dedicated L1 with sub-second finality, customizable permissions, and multi-protocol cross-chain payments. The technology integration is expected to be completed by June 2026.

resource

1. Avalanche of X:Posted (February 2026)

2. Blog post by Avalanche 1: Progmat moves over $2 billion in tokenized securities to Avalanche

3. Blog post by Avalanche 2: Where Tradition Meets Innovation: Avalanche’s Expanding Influence in Japan