Japanese digital securities infrastructure provider Progmat has completed the migration of all its security token (ST) issuances to an Avalanche L1 subnet, covering over 452 billion yen (approximately $34 billion) in total value. The move, announced on March 13, shifts the platform from Corda-based architecture to an EVM-compatible environment, enabling interoperability with Ethereum-based applications while maintaining compliance for financial institutions.
Migration details and performance gains
The migration was executed under the "Project Keystone" initiative, which introduced a new blockchain-mediation layer called "Mediator" to separate business functions from ledger implementation, creating a blockchain-agnostic architecture. Smart contracts were converted from Java-based Corda format to Solidity-based EVM format, minimizing disruption to existing issuers and users.
Processing speed for rights transfers increased three to five times compared to the pre-migration baseline, with settlement finality on the Avalanche L1 subnet now under two seconds. The new setup also leverages AvaCloud, a cloud service from Ava Labs that has obtained SOC1 and SOC2 Type II certifications, ensuring compliance standards required by financial institutions. Both Progmat and Ava Labs have established around-the-clock incident response protocols, including holidays and nighttime.
Market position and future plans
Progmat claims the largest share of Japan's digital securities market, with 45 out of 89 publicly listed ST issuances and over 231.3 billion yen in handled volume out of more than 364.3 billion yen total. The migration makes all managed ST issuances EVM-compatible, enabling cross-protocol and cross-application connectivity on public blockchains while meeting the operational requirements of financial institutions.
Looking ahead, Progmat is leading an initiative to tokenize Japanese government bonds and enable on-chain repurchase (repo) transactions, aiming for a T+0 settlement by 2026. Major banks including Mitsubishi UFJ and BlackRock Japan are participating in the project, which plans to publish a report in October 2026.
Executive commentary
Progmat CEO Tatsuya Saito described the migration as "a symbolic achievement that truly connects Japan's ST market with the global RWA ecosystem." Nick Mussalem, CEO of AvaCloud, stated that "successfully migrating over 452 billion yen of regulated securities without impacting issuers or users demonstrates the level that institutional-grade infrastructure must reach, and is the proof point we are most proud of."