Progmat, Japan’s largest security token platform by market share, has successfully migrated its entire digital securities infrastructure from Corda 5 to a newly dedicated Avalanche Layer 1 blockchain. The company reported that all active projects, representing over ¥452 billion in issued securities and underlying assets, have been moved to the new protocol as part of its ongoing expansion in digital assets.
Project Keystone delivers blockchain upgrade
The migration was carried out under Project Keystone, a strategic initiative aimed at modernizing Progmat’s platform and eliminating reliance on a single blockchain. As part of the transition, Progmat introduced a mediator layer between applications and the blockchain. This architecture allows for future connectivity to multiple distributed ledgers without changing the platform’s existing models of security token issuance, ownership, or transfer.
The dedicated Avalanche Layer 1 implementation also ensures the network complies with requirements for regulated financial products while operating separately from public retail trading environments.
Mini dictionary: Progmat is a digital securities infrastructure provider based in Japan, focused on offering tokenization and blockchain solutions for regulated assets.
EVM compatibility and increased transaction speed
With the upgrade, the platform also achieved compatibility with the Ethereum Virtual Machine (EVM), enabling developers to build with Ethereum-based tools. Progmat migrated its smart contracts from Java-based Corda code to Solidity, Ethereum’s leading programming language, streamlining integration for developers familiar with Ethereum ecosystems.
The company stated that rights transfers now process three to five times faster than before. Avalanche, the selected Layer 1 solution, reportedly reaches finality in under two seconds, enhancing blockchain settlement speed compared to the previous Corda-based infrastructure.
Progmat noted that while the system now supports EVM-compatible development, security tokens remain restricted and are not freely accessible through public crypto wallets.
During the switch, existing issuers experienced minimal disruption and retained their existing product structures.
| Platform | Transaction Finality | Programming Language | Compatibility |
|---|---|---|---|
| Corda 5 | Several seconds | Java | Private networks |
| Avalanche Layer 1 | Under 2 seconds | Solidity | EVM compatible |
Cross-chain settlements and industry expansion
Progmat expects the new infrastructure to underpin cross-chain settlement services involving security tokens, stablecoins, and tokenized bank deposits in the future. Earlier this year, Datachain announced a partnership with Progmat to develop cross-chain delivery-versus-payment (DvP) and payment-versus-payment (PvP) solutions, which enable assets and funds to settle in a coordinated manner across multiple blockchains.
Mini dictionary: Datachain is a Japanese company specializing in blockchain interoperability solutions, with a focus on cross-chain settlements and integrations.
Progmat highlighted that settlement services like delivery-versus-payment and payment-versus-payment are essential for regulated financial asset markets seeking seamless cross-blockchain operations.
The network is powered by AvaCloud, which provides both the Avalanche infrastructure and ongoing operational support. Progmat stated the system complies with SOC 1 and SOC 2 Type II assurance standards. Ava Labs, the primary technology developer behind Avalanche, and Progmat have also set up a joint response plan to address outages that occur outside standard business hours.
The move comes as Avalanche’s tokenization ecosystem grows, with BlackRock’s BUIDL fund reaching around $900 million in assets on the network and total tokenized real-world assets on Avalanche approaching $2.10 billion.
Progmat is additionally involved in research with Metaplanet and JPYC to explore Bitcoin-backed digital credit products. Securitize, a global tokenization firm, also expanded its tokenized shares offering to Avalanche and Solana in recent weeks.
