Avalanche Lands $2B+ Japan Real-World Asset Deal as Progmat Ditches Corda

Japan’s largest safety token platform, Progmat, is shifting greater than $2 billion in tokenized real-world property (RWA) from the Corda distributed ledger to a devoted Avalanche Layer 1 (L1) blockchain.

The property embody tokenized actual property and company bonds. The migration, codenamed “Challenge Keystone,” started in autumn 2025 and is scheduled for completion by the tip of June 2026.

What Is Progmat and Why Does It Matter?

Progmat is Japan’s dominant safety token (ST) platform, holding roughly ¥439.6 billion in property below administration. It presently accounts for roughly 63% of cumulative issuance quantity and 53.8% of complete tasks in Japan’s nationwide safety token market. The platform has facilitated greater than ¥216.9 billion in tokenized property up to now, overlaying actual estate-backed securities and tokenized company bonds.

Safety tokens, for these much less acquainted, are blockchain-based representations of regulated monetary devices like bonds, actual property shares, or equities. They perform like conventional securities however settle and switch on a blockchain quite than by way of legacy clearinghouses.

Japan’s safety token market is rising quick. Trade projections put the sector above ¥1.05 trillion (roughly $7 billion) by the tip of 2026, up from its present scale. That development is pushing platforms like Progmat towards infrastructure able to dealing with institutional workloads at a nationwide degree.

Why Is Progmat Leaving Corda?

Corda, developed by R3, has been a typical selection for enterprise blockchain tasks in monetary providers as a result of it was constructed particularly for permissioned environments. Progmat accomplished a full migration to Corda 5 SaaS as not too long ago as October 2024, the primary such migration in Asia. Now, lower than 18 months later, Corda is being dropped completely.

Progmat CEO Tatsuya Saito, posting on X as @tatsu_s1203, defined the reasoning instantly:

“We’re shifting Progmat ST from Corda5 to Avalanche, making all ST offers EVM-compatible and progressively permissionless.”

EVM stands for Ethereum Digital Machine. EVM compatibility implies that good contracts, developer instruments, and DeFi protocols constructed for Ethereum can work together with Progmat’s platform. That was not doable on Corda. The shift opens Progmat’s regulated safety tokens to the broader Ethereum ecosystem, together with international institutional traders and decentralized finance functions.

Three technical elements drove the choice:

• Avalanche L1 structure: Permits Progmat to manage validator entry, contract deployment rights, and person permissions with out taking the chain offline. That degree of customization issues when working below Japan’s Monetary Devices and Change Act.
• InterChain Messaging (ICM): Avalanche’s native cross-chain communication layer permits property to maneuver between chains with out counting on a single bridge supplier.
• Sub-2-second finality: Transactions settle virtually immediately, in comparison with the multi-day settlement home windows in conventional finance.

How Does the Cross-Chain Settlement Work?

The migration is not only a sequence swap. Progmat is commercializing cross-chain settlement capabilities for the primary time, overlaying two particular use circumstances.

The primary is Supply Versus Cost (DvP) between safety tokens and stablecoins. DvP is a normal settlement mechanism the place the switch of a safety and the fee for it occur concurrently, eliminating counterparty threat. Progmat has been focusing on this since October 2021.

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

These capabilities are constructed on prime of IBC/LCP through Datachain, mixed with Avalanche’s ICM. Utilizing two protocols quite than one is a deliberate option to keep away from dependency on a single bridge supplier. Progmat is partnering with Ava Labs and Datachain to ship the complete cross-chain stack.

Challenge Trinity and Challenge Pax

Two inner tasks help this work. Challenge Trinity, introduced in August 2025, moved DvP settlement towards business deployment. Challenge Pax, working since September 2024, has constructed cross-border stablecoin infrastructure with establishments in Europe, South Korea, and Japan. Each tasks at the moment are converging below the Avalanche migration.

What Does EVM Compatibility Truly Unlock?

For readers aware of DeFi or Ethereum growth, the implications are sensible and particular.

Ethereum’s good contract libraries, growth tooling, and DeFi protocols all turn into accessible to safety token issuers on Progmat ST. Which means international institutional traders can entry Japanese tokenized securities by way of acquainted infrastructure. DeFi platforms working on EVM chains can join with regulated ST merchandise. And stablecoin tasks can settle trades instantly in opposition to Progmat property.

Japan’s safety token market was constructed on purpose-built, permissioned chains from the start. Main monetary establishments licensed below Japanese monetary legislation constructed custody-based fashions round that construction. The compliance stack stays intact below the Avalanche migration. What modifications is the chain layer beneath it.

Is Avalanche Already Established in Japan?

Avalanche has a observe file in Japan throughout industries past finance. TIS Inc., which processes roughly half of Japan’s bank card quantity, runs its Multi-Token Platform on AvaCloud, Avalanche’s managed L1 service.

Toyota Blockchain Lab has used Avalanche to discover programmable car life cycles. Konami launched a devoted NFT platform on an Avalanche L1. Ponta, a loyalty program with roughly 100 million person accounts, points digital rewards on its devoted Avalanche L1 referred to as Mugen Chain.

These deployments present a sample. Japanese enterprises throughout finance, automotive, gaming, and retail have chosen Avalanche after they want a steadiness of native regulatory compliance and entry to world blockchain requirements.

Progmat’s migration matches that sample and extends it into capital markets at a scale not beforehand seen within the area.

Conclusion

The Progmat migration to Avalanche represents a concrete shift in how regulated monetary infrastructure is being rebuilt in Japan. The platform controls the vast majority of the nation’s safety token market, handles institutional-grade compliance necessities, and is now connecting that infrastructure to the worldwide EVM ecosystem by way of a devoted L1 with sub-second finality, customizable permissions, and multi-protocol cross-chain settlement. The technical integration is scheduled to finish by June 2026.

Sources

1. Avalanche on X: Posts (February, 2026)

2. Weblog submit by Avalanche 1: Progmat Migrates $2B+ of its Tokenized Securities to Avalanche

3. Weblog submit by Avalanche 2: The place Custom Meets Innovation: Avalanche’s Rising Affect in Japan