Luisa Crawford
Jul 13, 2026 14:02
Japan’s largest security token platform, Progmat, moves ¥452B in assets to Avalanche, paving the way for tokenized Japanese Government Bonds.
Progmat, Japan’s leading security token platform, has completed its migration to the Avalanche blockchain, transitioning more than ¥452 billion (approximately $3.3 billion) in tokenized assets. The move, announced in February 2026, was finalized on schedule and without operational disruptions, marking a significant step for blockchain-based finance in Japan.
The migration shifts all of Progmat’s digital securities—spanning real estate, corporate bonds, and other tokenized assets—from a closed, permissioned ledger to Avalanche’s public blockchain. This transition represents not just a technological upgrade but a pivot toward greater transparency and global accessibility for Japan’s burgeoning security token market.
Who Is Progmat?
Progmat, spun out of Mitsubishi UFJ Trust and Banking in 2023, dominates Japan’s digital asset issuance space, managing over half of the domestic security token market. As of July 2026, Progmat supports 45 of Japan’s 89 public security token projects, accounting for 53.4% of the deals and 64.6% of total issuance value. Its portfolio includes ¥231.3 billion of the ¥364.3 billion handled across the market.
Historically operating on a permissioned ledger, Progmat’s move to Avalanche integrates its operations into the broader decentralized finance (DeFi) ecosystem. This shift aligns with the global trend of tokenizing real-world assets (RWAs) to improve liquidity, transparency, and operational efficiency.
Why Avalanche?
Avalanche’s Ethereum Virtual Machine (EVM) compatibility allows Progmat to seamlessly port its existing smart contracts without altering their functionality. The migration also resulted in a 3-5x improvement in rights transfer processing speed, a crucial metric for financial institutions relying on the platform. Avalanche’s public blockchain infrastructure positions Progmat to support multi-chain capabilities as the market evolves.
What’s Next: Tokenized Japanese Government Bonds
With the Avalanche migration complete, Progmat is setting its sights on tokenizing Japanese Government Bonds (JGBs), one of the largest sovereign bond markets globally. In May 2026, it launched a working group to explore pairing tokenized JGBs with stablecoin-based repo transactions. The initiative aims to enable 24/7 trading and same-day settlement (T+0), capabilities that Japan’s current bond market infrastructure lacks.
The working group, which includes major financial players such as BlackRock Japan and Avalanche, plans to release its findings in October 2026 with a pilot project expected before year-end. This could position Progmat at the forefront of sovereign bond tokenization, further solidifying its role as a foundational layer in Japan’s digital asset ecosystem.
Implications for Investors
This migration underscores the growing institutional adoption of public blockchain infrastructure for regulated financial markets. For global investors, it opens up new opportunities to engage with Japan’s security token market, which was previously siloed on private ledgers. The integration with Avalanche also sets the stage for interoperability with DeFi protocols, potentially unlocking liquidity channels for tokenized assets.
Moreover, the planned tokenization of JGBs could redefine how sovereign bonds are traded and settled, with implications for market efficiency and accessibility. If successful, Progmat’s innovations could serve as a blueprint for other national markets exploring blockchain-based financial infrastructure.
As Japan continues its push toward on-chain securities and programmable settlements, Progmat’s partnership with Avalanche could be a critical enabler of this transformation.
Image source: Shutterstock
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