Avalanche Gains Momentum as Japan’s Progmat Migrates $3B+ in Tokenized Securities

Japan is rapidly emerging as a global leader in the tokenization of real-world assets (RWAs), and Avalanche is poised to become a central infrastructure provider. Progmat, Japan’s largest security token (ST) platform, is migrating over $3 billion in tokenized securities – including real estate assets and corporate bonds – to a dedicated Avalanche Layer 1 (L1) blockchain. This move signals a significant expansion of regulated financial products onto a public blockchain within the region.

Progmat: A Hub for Japanese Digital Finance

Progmat currently manages approximately ¥439.6 billion (roughly $3 billion USD) in assets under management (AUM) and accounts for roughly 63% of the cumulative issuance volume and 53.8% of total projects in Japan’s security token market [1]. The platform has already facilitated over ¥216.9 billion in tokenized assets. The Japanese digital securities sector is projected to exceed ¥1.05 trillion ($7 billion+) by the end of 2026, driving the need for scalable and compliant infrastructure.

Why Avalanche?

Progmat’s decision to build on Avalanche L1 is driven by several key factors:

• EVM Compatibility: Security tokens issued through Progmat will be compatible with the Ethereum Virtual Machine (EVM), enabling interoperability with the broader blockchain ecosystem and increasing liquidity [4].
• Sub-Second Finality: Avalanche’s fast transaction finality (under two seconds) offers a significant improvement over the multi-day settlement times of traditional finance [4].
• Application-Specific Network Control: A dedicated Avalanche L1 allows Progmat to customize the network’s rules and governance to meet the specific compliance requirements of regulated financial entities.

A Growing Ecosystem

Progmat is not the only Japanese institution embracing Avalanche. Other notable deployments include:

• TIS Inc.: Processes roughly half of Japan’s credit card volume and has launched a high-speed Multi-Token Platform on AvaCloud.
• Toyota Blockchain Lab: Exploring blockchain applications for mobility and vehicle lifecycle management.
• Konami: Launched dedicated NFT platforms on Avalanche L1s.
• Ponta Loyalty Program: Issued digital rewards at scale on its dedicated Avalanche L1 Mugen Chain.

Looking Ahead

The integration of Avalanche L1 support into the Progmat platform is scheduled for completion by the end of June 2026. This collaboration establishes a new standard for Japan’s digital financial infrastructure, balancing national compliance with the benefits of public blockchain technology. Avalanche is rapidly becoming the preferred blockchain for Japanese enterprises seeking a balance between local regulatory requirements and global interoperability [2], [3].