Japan’s financial landscape is entering a historic period of reinvention. Core capital markets infrastructure that once moved trillions of dollars through closed, legacy networks is expanding onto blockchain rails built for interoperability, programmability, and global reach. 

Progmat, Japan’s largest security token (ST) platform, is preparing for a landmark technical migration from Corda to a dedicated Avalanche Layer 1 (L1). Through this transition, more than $2B in tokenized real estate assets and corporate bonds will move onto Avalanche infrastructure, marking one of the most significant public blockchain expansions of regulated financial products in the region.

The Hub for Japanese Digital Finance

As the domestic leader in Japan's digital asset market (¥439.6 billion AUM), Progmat serves as the essential infrastructure powering the nation's shift toward onchain finance. The platform currently accounts for approximately 63% of the cumulative issuance volume and 53.8% of total projects in the national ST market, having facilitated more than ¥216.9 billion in tokenized assets to date.

While real estate-backed securities and tokenized corporate bonds have represented the majority of issuance, the market is rapidly evolving. Industry initiatives are advancing toward tokenized equities, investment trusts, and money market funds, expanding the scope of digital securities across Japan’s capital markets.

This expansion is driven by the rapid growth of the Japanese digital securities sector, which is expected to exceed ¥1.05 trillion ($7B+) by the end of 2026. Supporting this next phase requires infrastructure capable of handling institutional-grade throughput, compliance requirements, and long-term growth.

By deploying a dedicated Avalanche L1, Progmat is establishing scalable public blockchain rails designed for the trillion-yen era of digital finance.

Institutional Power Meets Public Scalability

To modernize capital markets at national scale, Progmat needed a sovereign, compliant environment that could handle institutional-grade workloads. By deploying a dedicated Avalanche L1 through AvaCloud, Progmat gains the ultimate competitive edge:

• EVM Compatibility: All security tokens issued through Progmat will be EVM-compatible, enabling composability with the broader public blockchain ecosystem and positioning Japanese digital securities within global liquidity environments.

• Sub-Second Finality: Avalanche’s sub-2-second finality ensures that transactions settle instantly, eliminating the multi-day lag of traditional finance.

• Application-Specific Network Control: Using a dedicated Avalanche L1 enables the ecosystem to maintain independent rule sets and governance tailored to the compliance needs of regulated financial entities.

The result is sovereign infrastructure built on public blockchain foundations, balancing national compliance with global standards.

Avalanche: The Foundation for Japan’s Sovereign Blockchain Era

Progmat’s migration to an Avalanche L1 places it alongside some of the most significant institutional and industrial projects in the country. Avalanche is currently powering a uniquely Japanese approach to blockchain adoption—one where legacy institutions upgrade their core systems rather than replacing them.

This movement is anchored by TIS Inc., which processes roughly half of Japan’s credit card volume and has launched its high-speed Multi-Token Platform on AvaCloud. Toyota Blockchain Lab has utilized Avalanche to explore mobility-oriented accounts and "programmable" vehicle life cycles, aiming to connect people and businesses more openly and securely. In the gaming and entertainment space, giants like Konami have chosen to launch dedicated NFT platforms on Avalanche L1s to reach broader audiences. Furthermore, major loyalty programs like Ponta, which serves approximately 100 million user accounts, have issued digital rewards at mass scale on their dedicated Avalanche L1 Mugen Chain. 

These diverse deployments demonstrate that Avalanche has become the standard for Japanese enterprises seeking a balance of local compliance and global interoperability.

Standardizing National Digital Infrastructure

The integration of Avalanche L1 support into the Progmat ST platform is scheduled for completion by the end of June 2026. By combining a dominant institutional platform with highly scalable blockchain technology, this initiative establishes a new technical standard for Japan’s national digital financial systems.