Avalanche Gains Momentum as Progmat Launches Dedicated L1 for Japan’s $2B+ RWAs
- Japan’s largest security token platform is migrating more than $2 billion in real estate and corporate bonds from Corda to a dedicated L1 on Avalanche.
- The initiative brings together some of Japan’s largest firms, from Toyota to Konami and TIS Inc., giving Avalanche a route into Japan’s institutional investment circles.
Progmat, the market leader in asset tokenization in Japan, is moving nearly $2 billion in tokenized real-world assets (RWAs) to a new Layer-1 network deployed on Avalanche. The company’s tokenized assets mainly include real estate and corporate bonds. Avalanche says this will be “one of the most significant public blockchain expansions of regulated financial products in the region.”
Another $2B+ of RWAs is headed to Avalanche.
Progmat, an organization working to become Japan’s national digital-asset infrastructure, is launching a dedicated Avalanche L1 to access built-in privacy onchain. 🧵 pic.twitter.com/WhxHl36gSF
— Avalanche🔺 (@avax) February 25, 2026
Progmat is a Japanese digital asset issuance platform originally established by Japan’s largest bank, MUFG. It’s now jointly owned with several other major banks, exchanges and tech giants. It claims to command a 63% share of Japan’s cumulative token issuance and over half of the national security token market, facilitating over ¥216.9 billion ($1.4 billion) in tokenized assets. Market experts project that the Japanese tokenized RWAs market will hit $7 billion by the end of this year as the sector grows rapidly in the region. Globally, McKinsey has estimated that it could unlock over $2 trillion by the end of the decade. Such a vast market requires a network capable of handling institutional-grade throughput at low and predictable fees, and with inbuilt compliance systems, Avalanche says. Japan’s Digital Future on Avalanche Progmat will deploy its own dedicated blockchain on Avalanche using AvaCloud, a managed blockchain service allowing enterprises to launch and manage their own Layer 1s. On Avalanche, users can have their own blockchains, previously called subnets. The underlying network provides the consensus engine, but each chain sets its own rules, controls the validators and adjusts fees at will. Each runs independently and does not affect the speed or security of other subnets or the overall network, as our guide explains. Any security token that Progmat issues on its L1 will be instantly compatible with Ethereum and other networks running the Ethereum Virtual Machine (EVM). This allows Japanese companies using Progmat to access the global digital asset space. The network states:
Progmat’s migration to an Avalanche L1 places it alongside some of the most significant institutional and industrial projects in the country. Avalanche is currently powering a uniquely Japanese approach to blockchain adoption—one where legacy institutions upgrade their core systems rather than replacing them.
Avalanche’s movement in Japan is spearheaded by TIS Inc., one of Japan’s largest financial firms, processing over half the country’s credit card volume. TIS, which processes over $2 trillion in payments, launched its Layer 1 network via AvaCloud last October. Other giants that have used the network include the Toyota Blockchain Lab, video game publisher Konami and Ponta, one of the country’s largest loyalty points programs with 100 million users. As CNF reported, Japan’s first yen-backed stablecoin, JPYC, launched in August on Avalanche, Ethereum and Polygon. AVAX trades at $9.35, dipping slightly over the past day despite a broader market recovery as Ether and Cardano gained over 4%.
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