Progmat, a Japanese cryptocurrency, has moved $2 billion to the Avalanche blockchain

Cryptocurrency from Japan

Progmat, Japan's leading security token (ST) issuance and management platform – backed by major institutions including banking giants MUFG, SMBC, and Mizuho – has announced a landmark migration of its tokenized assets to the Avalanche blockchain .

Announced on February 26, 2026, via the Avalanche Foundation blog and Progmat updates, this transition involves transferring over $2 billion ( approximately 439.6 billion yen ) in tokenized and managed real estate and corporate bond assets from the legacy Corda platform (R3-licensed DLT) to the custom, dedicated Avalanche Layer 1 (L1) network.

This is one of the most significant institutional blockchain transformations in Asia for custodial financial products, with Progmat now accounting for approximately 63% of security token issuance volume and 53.8% of projects in Japan . The move is part of a broader infrastructure overhaul codenamed " Project Keystone ," aiming for full completion by June 2026.

A safe harbor for the strategy?

Avalanche positions itself as a business-friendly Layer 1 blockchain, emphasizing:

• High flow rate

• Low transaction latency

• Verification in under one second

• Subnets can be customized for compliance needs.

For tokenized securities platforms, scalability and predictable validity are crucial. Unlike speculative token markets, regulated securities require reliability in settlement, predictable performance, and compatibility with organizational compliance standards.

Avalanche's subnet architecture enables a permissioned environment while maintaining the security of a public blockchain—an attractive hybrid model for financial institutions.

Shaping a broader strategy

All security token projects currently operating on the Progmat platform—primarily tokenized real estate and corporate bonds—are being converted.

• Total value at the time of announcement: >439.6 billion yen (~2–2.1 billion USD, depending on the exchange rate).

From Corda 5 (a delegated, enterprise-focused ledger) to Avalanche L1 , a dedicated-built blockchain powered by AvaCloud (Avalanche's managed blockchain service). The new chain features: Validation in under one second.

• EVM compatibility for global liquidity and DeFi integration.

• On-chain security is integrated (via native tools).

• Customizable compliance rules are designed specifically for the organization's needs (KYC/AML, regulatory reporting).

Progmat aims for scalability, enhanced interoperability (cross-chain delivery payments or DvP payments), and access to broader ecosystems while maintaining regulatory controls. Avalanche's customizable L1 architecture allows Progmat to retain control of its network while benefiting from the advantages of a public blockchain.

Progmat dominates Japan's digital securities market, with issuances projected to exceed 1.05 trillion yen (approximately US$7 billion) by the end of 2026. This transformation places Avalanche as the underlying infrastructure platform for much of that growth.

The Avalanche Foundation described the transition as " one of the most significant public blockchain expansion steps for regulated financial products in the region ," highlighting institutional validation of Avalanche in the risk asset management/tokenization sector in Asia.

RWA Asian market has joined

Backed by major Japanese banks and in line with FSA guidance, Progmat's transition signals a rapid increase in the adoption of public blockchain for regulated securities – in contrast to more accessible approaches elsewhere.

Dedicated L1 servers reinforce Avalanche's appeal for organizational use cases: high throughput, low cost, customizable privacy, and EVM access. This could attract more APAC issuers and cross-chain flows.

With Treasury bonds, bondholder securities, and real estate tokens exceeding $10 billion across the industry, the transfer of over $2 billion from a large regulated platform validating public chains for high-value assets has the potential to attract even more TradFi players.

Our review

Progmat's redirection of over $2 billion in investment to Avalanche underscores Japan's quiet but accelerating efforts toward on-chain finance – leveraging public blockchains for regulated asset tokenization and scalability. For Avalanche, this is a major win in the RWA (Residential Wealth Account) race among institutions, potentially driving wider adoption in Asia and elsewhere. As the transition progresses towards mid-2026, expect this deal to continue to be a key driver for AVAX amidst the increasingly mature tokenized asset market.

Disclaimer: The information presented in this article is the author's personal opinion in the field of cryptocurrency. This is not financial or investment advice. All investment decisions should be based on careful consideration of your personal portfolio and risk tolerance. The views expressed in this article do not represent the official stance of the platform. We recommend that readers conduct their own research and consult with experts before making any investment decisions.

Compiled and analyzed by HCCVenture

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