Progmat moves ¥452B security tokens to Avalanche

Progmat completed a migration in July that moved its entire security token platform — more than ¥452 billion (about $2.7 billion) in active tokenized assets — from a private Corda 5 permissioned ledger to a dedicated public Avalanche Layer 1 network. The company reported the transfer finished on schedule and did not disrupt institutional users.

The migration was announced in February and concluded in July, Progmat wrote in a July 10 blog post. The firm ported every live smart contract to the Ethereum Virtual Machine while keeping contract behavior and specifications unchanged.

“Rather than a straight swap of one ledger for another, Progmat redesigned the underlying architecture so the platform is no longer tied to any specific blockchain, making it easier to facilitate a multi-chain platform as requirements evolve,” the blog reads.

Progmat reported that rights transfer processing is now approximately three to five times faster than before the migration and that finality times are below two seconds. The company reported that financial institutions using the platform continued normal operations throughout the transition.

Moving assets onto a public, EVM-compatible chain makes tokenized assets more accessible to global participants and allows interoperability with other blockchain networks, Progmat wrote.

Progmat was developed inside Mitsubishi UFJ Trust and Banking (MUFG) and spun out as an independent company in October 2023. Backers include Mizuho, the Tokyo Stock Exchange and SBI.

The company reported it holds about 53% of Japan’s security token market share and 64.6% of the country's total issuance value, covering the majority of tokenized real estate and corporate bonds in Japan.

In May, Progmat launched a Tokenized Government Bonds & On-Chain Repo Working Group with asset managers, banks and securities firms to study tokenized Japanese Government Bonds, including 24/7 trading and same-day (T+0) settlement.

Progmat described the platform redesign as a technical change to support multi-chain operation and wider technical interoperability.