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Progmat migrates ¥452B ($2.7B) of tokenized securities from Corda to Avalanche

Japan's dominant security-token platform completes 'Project Keystone', porting all live RWA — corporate bonds, real estate, funds — from Corda 5 onto a dedicated Avalanche EVM L1 with sub-2s finality.

by 5 min read
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Progmat, Japan's dominant security-token platform, has completed Project Keystone — the migration of every live tokenized asset on its books, ¥452 billion (≈$2.7 billion) of corporate bonds, funds and tokenized real estate, from a Corda 5 private ledger to a dedicated Avalanche Layer 1 running EVM-compatible Solidity contracts. The announcement is confirmed by Avalanche's own release, covered by The Block, crypto.news and Cryptopolitan. Migration was launched under the Keystone name in February 2026 and completed this month — no institutional user reported disruption.

What actually moved

Progmat is the operator behind the majority of Japan's regulated security-token issuance since 2022, with roughly 53% market share and 64.6% of total issuance value across the Japanese security-token market. Assets on the platform include tokenized corporate bonds and tokenized real estate products issued by Japanese banks, trust banks and REIT-like vehicles. All of that inventory has now been re-hosted on a permissioned Avalanche L1 supplied by AvaCloud, with operating services assured to SOC 1 and SOC 2 Type II standards.

Corda 5 → Avalanche EVM: how the port was done

The technical work has three parts worth calling out because they are the parts that other private-ledger operators (Fnality, HQLAᵡ, on-chain repo pilots at Onyx and Broadridge) will study:

  1. Smart contracts ported from Java (Corda) to Solidity (EVM) without altering the business specification or the legal wrappers governing each token. That's the piece regulators care about — the security's terms and the transfer-restriction logic did not change; only the runtime did.
  2. A "mediator" architecture layer was introduced between the applications and the ledger. Instead of the applications talking to Corda directly, they now talk to a mediator that can address any ledger below it. This is what lets Progmat plug into other public chains later without another full migration.
  3. AvaCloud operates the underlying Avalanche L1 as a permissioned network for the institutional participants, while keeping EVM equivalence — so Solidity tooling, block explorers and RPC methods behave as builders expect on Avalanche's public C-Chain.

Numbers

- Platform                     : Progmat (spun out of Mitsubishi UFJ Trust and Banking, Oct 2023)
- Backers                      : MUFG, Mizuho, Tokyo Stock Exchange, SBI Holdings (all shareholders)
- Migration project name       : Project Keystone
- Migration announced          : 2026-02-26
- Migration completed          : 2026-07 (announced this week)
- Total tokenized value moved  : ¥452B (~$2.7B–$2.8B USD)
- Source ledger                : Corda 5 (private permissioned)
- Destination                  : Avalanche Layer 1 (EVM, permissioned) via AvaCloud
- Finality                     : < 2 seconds
- Rights-transfer speed        : 3–5× faster vs Corda baseline
- Compliance                   : SOC 1, SOC 2 Type II
- Progmat market share (JP)    : 53% by count, 64.6% by issuance value
- Asset types on-chain         : corporate bonds, tokenized funds, real-estate tokens
- Source: Ava Labs release + The Block + crypto.news

Why this matters more than the headline number

The $2.7B USD figure looks modest next to BlackRock's BUIDL or Ondo's OUSG, but the composition is different. BUIDL and OUSG are money-market fund wrappers; Progmat's book is live, regulated Japanese securities — real assets whose secondary transfer, corporate actions and legal recording are governed by Japan's Financial Instruments and Exchange Act and enforced by the Financial Services Agency (JFSA). Moving that class of asset off a private ledger and onto a public-EVM L1, with the same regulator signed off, is the interesting precedent.

Second, the mediator layer signals where Progmat is headed. In May, Progmat launched a working group with Japanese asset managers, banks and securities firms to study tokenized Japanese Government Bonds (JGBs) paired with stablecoin repo — the same on-chain repo pattern Broadridge runs privately in the US, but on public-EVM rails, on one of the world's largest sovereign bond markets. Post-Keystone, the plumbing to add JGBs is a chain integration, not another migration.

What to watch

  1. JGB tokenization pilots. Progmat's working group is expected to publish a scoping paper this half. The point to watch is whether the JGB leg will be issued on the same Avalanche L1 or on a new one — the mediator architecture supports either.
  2. Other financial-institution operators leaving Corda. R3's private-ledger commercial pilots have plateaued; SDX (Swiss Digital Exchange) and Fnality remain on private rails, but Fnality's £-token settlement piloted on-chain payments in 2024–25. A second major operator following Progmat's playbook is the story to catch.
  3. JFSA guidance on public-permissioned L1s. The Progmat migration was blessed under the existing security-token framework; a formal circular endorsing the mediator + public-chain model would open the door to smaller Japanese issuers repeating the same move.
  4. AvaCloud reference customers. Progmat's stack is now the visible large-scale reference deployment for AvaCloud's institutional service. Additional named customers in the next quarter would confirm that Avalanche's institutional stack is winning the "public + permissioned + EVM" tender against Polygon CDK, Arbitrum Orbit, and Optimism's OP Stack.

Context — the pattern

Progmat is the third major real-world-asset infrastructure to consolidate onto a public-EVM L1 in the last twelve months, after Securitize's NYSE-linked SECZ tokenization work on Avalanche and Solana and DTCC's tokenized US Treasuries and Russell 1000 basket on Stellar. The common thread: a regulated tokenization operator that started on a private permissioned ledger is graduating to a public-EVM chain with institutional controls, not to a fully public trustless environment. Full public composability is not the goal — regulated 24/7 settlement and cross-chain reach are.

Sources:

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