Progmat, Japan’s leading tokenized securities platform founded by Mitsubishi UFJ Financial Group, has announced plans to migrate its infrastructure to an Avalanche Layer 1 blockchain, marking a significant strategic shift in the country’s digital asset market. The move will transition the platform away from its current Corda based enterprise distributed ledger system, with full migration targeted by the end of June 2026.
Progmat currently hosts the largest volume of security token issuances in Japan, serving banks, trust companies, and institutional investors seeking compliant digital securities infrastructure. By pivoting to an Ethereum compatible environment on Avalanche, the platform aims to enhance blockchain interoperability while aligning with global tokenization standards that increasingly rely on Ethereum Virtual Machine compatibility.
The decision reflects broader market demand for cross chain connectivity and access to permissionless blockchain ecosystems. Avalanche Layer 1 networks, previously known as Subnets, allow organizations to deploy application specific blockchains that can be either permissioned or permissionless. These networks operate with independent validator sets while maintaining native interoperability with the primary Avalanche blockchain.
For institutional platforms such as Progmat, this structure offers a balance between regulatory compliance and public blockchain connectivity. It allows token issuers to maintain governance and operational control while still benefiting from broader ecosystem liquidity and technological compatibility.
A key component of the transition involves Datachain, an existing interoperability partner. Datachain will continue supporting security token issuance not only on Avalanche but also across non Avalanche blockchains. It will also facilitate delivery versus payment and payment versus payment settlement mechanisms using multiple stablecoins. This development signals a growing emphasis on stablecoin based settlement rails within tokenized capital markets infrastructure.
Security token platforms globally are under pressure to improve efficiency in settlement, expand market access, and reduce operational silos. By migrating to Avalanche, Progmat positions itself to integrate more seamlessly with decentralized finance protocols, custody providers, and cross chain bridges that rely on Ethereum compatibility.
Japan has been an early adopter of regulated security token offerings, with financial institutions increasingly digitizing bonds, real estate trusts, and other structured products. Progmat’s transition may accelerate domestic adoption by enabling greater technical flexibility and international connectivity.
The move also reflects a larger industry trend away from isolated enterprise blockchains toward modular architectures that combine private governance with public network interoperability. Avalanche’s design allows enterprises to configure compliance frameworks while preserving scalability and transaction efficiency.
As tokenization continues to reshape capital markets, infrastructure providers are competing to deliver secure, interoperable environments that can support real world asset issuance at scale. Progmat’s migration underscores the growing role of Ethereum compatible networks in shaping the next phase of institutional blockchain adoption.
