Progmat has migrated its entire security-token platform off Corda 5 and onto a dedicated Avalanche Layer 1, moving every active project — representing more than ¥452 billion in underlying assets and issued securities — to the new network.
Why it matters
- The switch makes Progmat’s security tokens EVM-compatible, opening access to Solidity-based smart contracts and the broader Ethereum tooling ecosystem while preserving the platform’s regulated issuance, ownership and transfer processes.
- Progmat positions itself as Japan’s largest security-token offering by domestic market share, and says the migration was carried out under “Project Keystone.”
What changed technically
- Progmat decoupled business logic from any single ledger by inserting a mediator layer between applications and the blockchain. That design preserves existing workflows for issuers and investors, and enables future connections to other chains without requiring projects to be rebuilt.
- Smart contracts were ported from Java/Corda code to Solidity/EVM, but Progmat says current functions and service requirements were retained and the migration caused minimal disruption to issuers and users.
Performance and limits
- The company reports rights-transfer processing is three to five times faster on the new setup, citing internal tests; Avalanche transaction finality is under two seconds. Progmat notes finality measures network-confirmed transactions and does not encompass every banking or administrative step around a trade.
- Those speed figures come from Progmat’s own testing and have not been independently verified. Progmat has not published public transaction data showing network performance under peak demand or across large investor bases, nor has it tied any new trading-volume figures directly to the migration.
Operations, compliance and availability
- The dedicated Avalanche L1 is supplied and operated by AvaCloud and built to meet SOC 1 and SOC 2 Type II assurance standards. Progmat and Ava Labs implemented an outage response system that covers nights and holidays, aiming to satisfy the control and availability expectations of regulated financial institutions.
- Progmat emphasizes the network is application-specific and intended for regulated financial products, not an unrestricted retail trading venue; EVM compatibility does not mean those securities become freely transferable to public wallets.
Strategic implications and next steps
- Progmat says the new architecture prepares the platform for cross-chain functionality and planned links between security tokens, stablecoins and tokenized bank deposits. Partners including Datachain have discussed cross-chain Delivery-versus-Payment (DvP) and Payment-versus-Payment (PvP) services, which would coordinate asset and payment exchanges across networks in a single process.
- AvaCloud CEO Nick Mussallem framed the transfer of more than ¥452 billion in regulated securities as a test for institutional infrastructure, though that assessment comes from a party involved in the migration.
Ecosystem context
- The move comes as Avalanche’s real-world assets and institutional activity grow: BlackRock’s BUIDL fund reached roughly $900 million on Avalanche, and the network’s distributed RWA holdings were reported near $2.1 billion. Separately, Progmat said it will support a Metaplanet and JPYC study into Bitcoin-backed digital credit (still under review), and Securitize recently listed shares on Avalanche and Solana.
Bottom line
Progmat’s migration to a dedicated Avalanche L1 is a major technical and strategic shift for one of Japan’s leading STO platforms: it combines EVM compatibility and faster on-chain finality with a compliance-focused, application-specific architecture designed to scale toward multi-chain, regulated asset use cases — albeit with important caveats about independently verified performance and public metrics.
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