Avalanche has successfully migrated Japan’s leading security token platform, Progmat, marking a significant milestone with over ¥452 billion (approximately $2.7 billion) in regulated digital securities transitioned to its Layer 1 blockchain.
This migration, announced in February 2026, was completed as scheduled without disrupting the operations of existing security token platforms. Transactions can now be processed at speeds three to five times faster than before, benefiting multiple prominent Japanese financial institutions that utilize Progmat for issuing tokenized assets.
Progmat's Market Position
Progmat holds a notable position in Japan’s security token landscape, executing 53.4% of disclosed transactions and accounting for 64.6% of the total issuance amount. The platform is currently managing 45 of 89 ongoing projects, totaling ¥231.3 billion.
Future Developments and Initiatives
In light of the migration's completion, Progmat is exploring tokenization of Japanese Government Bonds (JGBs). In May 2026, the platform established a Tokenized Government Bonds and On-Chain Repo Working Group, which includes various financial institutions and blockchain firms, including BlackRock Japan. The goal of this initiative is to facilitate continuous trading and real-time settlements through the tokenization of government bonds and repos that are backed by stablecoins.
A report on the project is expected by October, with aims for commercialization by year-end. As Avalanche’s native token, AVAX, shows signs of recovery following a rough June, increased liquidity, reflected by a 48% rise in stablecoin circulation within a week, indicates growing acceptance. Current trading for AVAX is around $6.00 to $6.30, with a resistance level at $7.08. A daily close above this level could push prices towards $10.50-$10.80.
This material is for informational purposes only and should not be considered financial advice.
