| Key Points: – Progmat shifting ¥439.6B in tokenized securities from Corda 5 to Avalanche. – Migration makes assets EVM-compatible, enabling Ethereum-style contracts and developer tooling. – LCP roadmap targets cross-chain DvP/PvP, moving from siloed to interoperable. |
According to Datachain, Progmat will migrate approximately ¥439.6 billion (about US$2 billion) in tokenized securities from Corda 5 to a dedicated Layer-1 on Avalanche, making the assets EVM-compatible. The same announcement indicates a cross-chain roadmap using the “LCP” protocol to enable Delivery versus Payment (DvP) for security tokens and stablecoins and Payment versus Payment (PvP) among stablecoins across different chains. These plans frame a move from a siloed ledger to an interoperable, programmable environment.
EVM compatibility means security tokens can use Ethereum-style smart contracts, common developer tooling, and standard wallet integrations. This can improve programmability for corporate actions and settlement logic while preserving enterprise controls at the L1 level. In regulated markets like Japan’s tokenized securities, composability is often paired with permissioning and auditability requirements.
Why Avalanche over Corda 5 for Progmat’s security tokens
As reported by Blockonomi, Avalanche was selected for “financial-grade performance and flexibility,” including sub-second finality, customizable Layer-1 controls over validators and permissions, and broad interoperability. Those capabilities align with institutional needs for predictable settlement, access controls, and connectivity to other chains. The shift positions EVM-compatible security tokens to interface with a wider smart contract ecosystem.
According to Ava Labs, the dedicated Avalanche L1 will leverage native speed, scale, and configurable privacy, with AvaCloud assisting on blockchain operations and security. That combination targets the operational burden of running enterprise-grade infrastructure while retaining policy controls. It also signals an emphasis on compliance features for real-world assets (RWAs).
Progmat has framed the transition as a path from a Corda-based model toward EVM composability while maintaining enterprise guardrails. Tatsuya Saito, Founder & CEO, said, “We’re moving Progmat ST from Corda5 to Avalanche, making all ST deals EVM-compatible and progressively permissionless.”
Implications and open questions after Progmat’s Avalanche migration
Potential market impact on AVAX and RWA activity (uncertain)
If executed as described, EVM-compatible security tokens could lower integration costs and broaden institutional access, but the scale of on-chain activity remains uncertain. Actual demand, liquidity formation, and any impact on AVAX usage will depend on rollout specifics and participating institutions.
At the time of this writing, Avalanche (AVAX) traded near $8.93, with 8.92% short-term volatility and an RSI around 47.6 described as neutral. Recent metrics also indicated 8 green days in 30, with SMA50 at 10.91 and SMA200 at 16.58, alongside bearish sentiment.
Pending details: timeline, validator set, supported stablecoins and chains
Key items have not been disclosed, including the migration timeline, validator composition, and the permissioning model for the dedicated L1. Governance, data privacy settings, and operational safeguards during and after asset migration are also to be clarified.
Support for DvP and PvP will hinge on which stablecoins and chains are enabled at launch. Specifics on custody integrations, attestation flows, and cross-chain settlement finality parameters remain pending official updates.
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