- Japan’s largest security token platform migrates over $2 billion of real estate and corporate bonds from Corda to Avalanche’s dedicated L1.
- The initiative will bring together major Japanese companies from Toyota Motor Corporation to Konami to TIS Inc., giving Avalanche a path into Japan’s institutional investor world.
Progmat, a leader in the Japanese asset tokenization market, is migrating nearly $2 billion of tokenized real-world assets (RWA) to a new layer 1 network deployed on Avalanche.
The company’s tokenized assets primarily include real estate and corporate bonds. Avalanche says this will be “one of the most significant public blockchain expansions in regulated financial products in the region.”
Over $2 billion more in RWA is headed to Avalanche.
Progmat, an organization working towards Japan’s national digital asset infrastructure, is launching a dedicated Avalanche L1 to access on-chain built-in privacy. 🧵 pic.twitter.com/WhxHl36gSF
— Avalanche🔺 (@avax) February 25, 2026
Progmat is a Japanese digital asset issuance platform originally founded by Japan’s largest bank, MUFG. It is currently jointly owned by several other large banks, exchanges, and tech giants. It claims to account for 63% of Japan’s cumulative token issuance share, more than half of the national security token market, and facilitate more than 216.9 billion yen ($1.4 billion) in tokenized assets.
Market experts predict that Japan’s tokenized RWA market will reach $7 billion by the end of this year, as the sector is growing rapidly in the region. McKinsey estimates that the world could generate more than $2 trillion by the end of the 2010s.
Such a vast market requires a network that can handle organizational-level throughput at low, predictable rates and has compliance systems built in, Avalanche said.
Japan’s digital future in Avalanche
Progmat will deploy its own proprietary blockchain on Avalanche using AvaCloud, a managed blockchain service that allows enterprises to stand up and manage their own Layer 1. Avalanche allows users to have their own blockchain, previously known as a subnet.
The underlying network provides the consensus engine, but each chain sets its own rules, controls validators, and adjusts fees at will. As explained in the guide, each runs independently and does not affect the speed or security of other subnets or the network as a whole.
The security tokens that Progmat issues on L1 are immediately compatible with Ethereum and other networks running the Ethereum Virtual Machine (EVM). This will give Japanese companies using Progmat access to the global digital asset space.
The network said:
Progmat’s transition to Avalanche L1 positions Progmat alongside the nation’s most important institutional and industrial projects. Avalanche is currently promoting a uniquely Japanese approach to blockchain adoption, one in which traditional institutions upgrade their core systems rather than replacing them.
The Avalanche movement in Japan is being led by TIS Inc., one of Japan’s largest financial companies, which processes more than half of Japan’s credit card transactions. TIS, which processes more than $2 trillion in payments, launched its Layer 1 network via AvaCloud last October. Other major companies using the network include Toyota Blockchain Lab, video game publisher Konami, and Ponta, one of the country’s largest loyalty points programs with 100 million users.
As reported by CNF, JPYC, Japan’s first yen-denominated stablecoin, was launched on Avalanche, Ethereum, and Polygon in August.
AVAX trades on: $9.35fell slightly over the past day despite the overall market recovery as Ether and Cardano rose 4%.
