Progmat, Japan’s leading tokenized securities platform founded by MUFG and backed by several major financial institutions, has announced plans to migrate its infrastructure from Corda to an Avalanche L1 blockchain by the end of June 2026. The move marks a significant strategic pivot toward Ethereum compatible technology and broader interoperability within global tokenized capital markets.
Progmat currently operates on the Corda enterprise distributed ledger and hosts the largest volume of security token issuances in Japan. By transitioning to Avalanche’s application specific Layer 1 chain architecture, the platform aims to align with blockchain standards that support smart contracts and compatibility with Ethereum based ecosystems.
Avalanche L1 chains, formerly known as subnets, are customizable blockchains that can be permissioned or permissionless. Each L1 operates with its own validator set while remaining interoperable with the broader Avalanche network. This structure allows institutions to design tailored compliance environments without sacrificing connectivity to wider digital asset infrastructure.
The primary motivation behind Progmat’s migration is to enable greater interoperability across permissionless chains and global blockchain networks. Ethereum compatibility expands integration possibilities with wallets, custody solutions and decentralized finance protocols that operate on Ethereum virtual machine standards.
Progmat’s existing interoperability partner Datachain will continue to play a central role in the new architecture. The collaboration will support cross chain security token issuance, as well as delivery versus payment and payment versus payment settlement mechanisms. These settlement models can be executed using multiple stablecoins, enhancing liquidity flexibility and reducing settlement friction.
Delivery versus payment ensures that the transfer of tokenized securities occurs simultaneously with payment, minimizing counterparty risk. Payment versus payment mechanisms facilitate atomic swaps between different currencies or digital assets. The inclusion of stablecoin settlement options underscores the growing integration between tokenized securities and regulated digital cash instruments.
Japan has emerged as a structured and regulation forward environment for security token issuance. Financial institutions in the country have focused on tokenizing bonds, real estate assets and other financial instruments under clear regulatory frameworks. Progmat’s migration signals that enterprise tokenization platforms are increasingly seeking infrastructure that balances institutional compliance with global blockchain interoperability.
The broader tokenization market continues to gain traction as asset managers and banks explore blockchain based issuance for traditional securities. Interoperable Layer 1 environments are becoming central to these efforts, offering scalability, regulatory controls and cross network functionality.
By moving to Avalanche L1, Progmat positions itself within a more globally integrated blockchain ecosystem while maintaining the permissioned flexibility required by institutional issuers. The transition reflects a wider trend in capital markets toward adopting Ethereum compatible infrastructure as tokenized assets expand beyond regional boundaries.
