Catenaa, Monday, July 13, 2026- Japan’s largest digital securities platform has quietly challenged one of institutional finance’s longest-standing assumptions by migrating more than $2.7 billion in regulated tokenized assets from a private blockchain to a public network, marking a significant milestone in the evolution of institutional blockchain adoption.
Progmat, which dominates Japan’s security token market, has completed the migration of its entire issuance and management platform from a permissioned Corda 5 ledger to a dedicated Avalanche Layer 1 blockchain. The move transferred more than ¥452 billion ($2.7 billion) in active tokenized assets without disrupting financial institutions using the platform.
The migration is notable not simply because of its scale, but because it represents a growing institutional willingness to place regulated financial infrastructure on public blockchain technology rather than keeping it inside closed enterprise networks.
Official information on the migration is available through Progmat here and the Avalanche ecosystem here.
For much of the past decade, banks viewed public blockchains as unsuitable for regulated financial markets.
Instead, they invested heavily in private, permissioned ledgers designed to provide greater control, privacy and regulatory oversight.
Progmat’s migration suggests that thinking is beginning to change.
Rather than abandoning blockchain for traditional infrastructure, Japan’s leading tokenization platform has abandoned private blockchain architecture in favor of a public network specifically designed to meet institutional requirements.
Even more importantly, the company redesigned its technology so it is no longer dependent on any single blockchain, making future multi-chain expansion significantly easier.
That architectural decision may ultimately prove more important than the migration itself.
According to Progmat, all existing smart contracts were successfully transferred to an Ethereum Virtual Machine-compatible environment without changing how live financial products operate.
The migration was completed on schedule with no interruption to participating financial institutions.
Rights transfers are now reportedly three to five times faster, while transaction finality has been reduced to less than two seconds.
The improvements demonstrate that public blockchain infrastructure can deliver operational benefits without requiring institutions to compromise existing regulatory standards or customer experience.
The migration is another chapter in Japan’s rapidly expanding digital finance strategy.
Catenaa recently reported how Japan’s stablecoin economy is taking shape, with SBI Group expanding regulated blockchain financial services beyond payments into lending.
Earlier this week, Catenaa also examined SBI’s broader strategy of building Asia’s on-chain financial ecosystem, where exchanges, tokenization platforms, settlement infrastructure and digital asset services are being assembled into a unified institutional network.
Progmat’s migration complements that strategy by modernizing the infrastructure supporting tokenized securities rather than digital payments.
Together, these developments suggest Japan is building an integrated blockchain financial ecosystem rather than isolated cryptocurrency products.
The decision also challenges a widely held belief within institutional finance.
For years, many analysts argued that banks would ultimately favor permissioned blockchains while public networks remained largely confined to cryptocurrency markets.
Progmat’s decision points in a different direction.
Instead of maintaining a domestic-only ledger visible primarily to Japanese institutions, regulated financial assets can now interact more easily with global blockchain infrastructure while remaining subject to institutional governance.
The platform currently represents approximately 53% of Japan’s security token market and nearly 65% of the country’s total tokenized asset issuance, including much of its tokenized real estate and corporate bond market.
The company has also established a working group to study tokenized Japanese Government Bonds and the implications of 24-hour trading and same-day settlement, indicating that the migration is only the beginning of a broader modernization effort.
Progmat’s move reinforces a broader institutional trend that Catenaa has documented across multiple markets.
In SWIFT Makes Blockchain Invisible to Global Banking, blockchain became invisible payment infrastructure rather than a competing financial system.
Similarly, PayPal’s native expansion of PYUSD onto Polygon demonstrated how regulated digital money is increasingly relying on public blockchain networks to support commercial activity.
Across banking, payments and tokenization, institutions appear to be asking a different question.
Instead of debating whether blockchain belongs in finance, they are deciding which blockchain infrastructure is best suited to regulated financial markets.
Progmat’s migration represents more than a technology upgrade. It signals growing institutional confidence that regulated financial assets can operate securely on public blockchain infrastructure. As banks, exchanges and asset managers increasingly adopt tokenization, the debate is shifting away from whether public blockchains are suitable for finance toward how they should be integrated into global capital markets. Japan is positioning itself at the forefront of that transition.
Progmat was originally developed within Mitsubishi UFJ Trust and Banking (MUFG) before becoming an independent company in 2023. The platform is backed by leading Japanese financial institutions including MUFG, Mizuho, SBI Holdings and the Tokyo Stock Exchange, and has become Japan’s largest security token issuance platform. The migration from Corda to Avalanche reflects a wider institutional movement toward tokenized securities, programmable financial assets and blockchain-based settlement infrastructure, areas expected to play a central role in the future of regulated capital markets.
