Avalanche has reached a significant milestone in its expansion into regulated finance, as digital asset platform Progmat has successfully migrated Japan’s largest security token platform onto the Avalanche Layer 1 blockchain. This transfer represents more than ¥452 billion (approximately $2.7 billion) in regulated digital securities moving to Avalanche’s infrastructure.
Major migration to Avalanche completed
The migration, announced in February 2026 and executed as scheduled, was completed without causing disruptions to ongoing operations for issuers or participating financial institutions. Progmat, a prominent digital asset platform utilized by leading Japanese banks and financial entities for token issuance, now processes transactions three to five times faster than before.
Progmat currently manages 53.4% of all disclosed security token transaction volume in Japan and has a 64.6% share in total issuance amount. The company oversees 45 out of 89 active projects, totaling ¥231.3 billion. This strategic move involved a transition from a private blockchain environment to Avalanche’s public Layer 1, while smart contract structures remained unchanged and the platform maintained interoperability across multiple chains.
Mini dictionary: Progmat is a leading Japanese digital securities platform developed to support the issuance, management, and trading of tokenized assets in compliance with local regulations.
| Metric | Value (Post-Migration) |
|---|---|
| Total digital securities | ¥452 billion |
| Percent of transactions (Progmat share) | 53.4% |
| Total projects managed | 45 out of 89 |
| Total issuance amount (Progmat) | ¥231.3 billion |
More than ¥452 billion in regulated digital securities have moved to Avalanche’s public Layer 1 blockchain, accelerating transaction speeds and supporting uninterrupted service for participating Japanese financial institutions.
Government bond tokenization targeted
Following the migration, Progmat turned its attention to the tokenization of Japanese Government Bonds (JGBs). In May 2026, the company established a working group focused on the development of on-chain government bond and repo markets. This working group includes major banks, asset managers, securities firms, and blockchain infrastructure providers.
The initiative, which also involves BlackRock Japan, aims to enable 24/7 trading and real-time settlement of tokenized government bonds and repos. The project outlines plans to produce a comprehensive report by October 2026, with commercialization anticipated before the year’s end.
The tokenization of government bonds on blockchain is viewed as a significant step for Japan’s regulated finance sector, with the potential to improve market efficiency and accessibility.
Mini dictionary: Tokenization of government bonds involves issuing debt securities as blockchain-based digital tokens, allowing for programmable settlement, improved liquidity, and enhanced transparency.
AVAX shows recovery after migration
Avalanche’s native token AVAX started to show signs of recovery, following a challenging June. Crypto market analyst Michaël van de Poppe highlighted a 48% increase in the total stablecoin supply circulating on Avalanche within one week, coinciding with a doubling of tokens in BlackRock’s BUIDL fund deployed on Avalanche during the same period.
Michaël van de Poppe observed that rising stablecoin volumes and increased activity in BlackRock’s BUIDL fund on Avalanche may signal renewed investor interest and create potential for AVAX to regain momentum toward higher price territory.
On technical charts, AVAX has been trading between $6.00 and $6.30, posting higher lows as it seeks a reversal from earlier declines. Resistance at $7.08 remains a key level. A daily close above that figure could strengthen the uptrend and create an upward move toward $10.50 to $10.80, about 58% above the current price. Conversely, a decline below $6.00 would weaken bullish momentum.
| Support/Resistance | Price (USD) |
|---|---|
| Current range | $6.00 – $6.30 |
| Key resistance | $7.08 |
| Target on breakout | $10.50 – $10.80 |
These developments reflect growing institutional adoption of Avalanche technology and greater acceptance of tokenized securities in Japan’s finance sector.
