Progmat Runs Its Securities on Avalanche. Its Government-Bond Repo Sandbox Is on Canton.

Progmat, a Japanese security-token platform that says it holds the top domestic market share, runs that business on an Avalanche L1. On Oct. 22 it opened the next phase of a separate workstream, tokenized Japanese government bonds (JGBs) and on-chain repo, and the sandbox for that phase is being built on Canton Network, per Progmat's release.

The securities book is on Avalanche

In a release dated July 13, Progmat said it had moved its security-token (ST) issuance and management platform from Corda 5 to an Avalanche L1, covering all ST projects on the platform, which it put above JPY 452 billion (release PDF). The company said rights transfers run roughly three to five times faster and that finality on the L1 comes in under two seconds (release PDF). Avalanche's own post, dated July 10, put Progmat's share at 45 of 89 publicly disclosed Japanese ST projects. Ledger Insights reported the same migration and converted the total to about $2.8 billion.

On Oct. 22, Avalanche Team1 promoted the migration under the line "Progmat Moved $2.7 Billion to Avalanche." The dollar figure is Team1's conversion; Progmat's figure is in yen.

The migration followed a Feb. 26 strategic partnership among Progmat, Ava Labs and Datachain. The July release also says Progmat rebuilt the platform around a "mediator" layer so the ledger implementation is abstracted from the business functions, and Progmat's comment in the release cites flexible multi-chain selection as an anticipated requirement (release PDF).

The JGB repo sandbox is on Canton

The Oct. 22 release publishes the interim summary of the Tokenized Government Bonds / On-Chain Repo Working Group, run under Progmat's Digital Asset Co-Creation Consortium (367 member organizations). The group was set up in May 2026 with 69 organizations (release PDF). It now moves from a desk-study phase to a "Live Verification Phase," with a sandbox where tokenized JGBs, tokenized deposits and stablecoins can be issued and managed on Canton Network, to be linked progressively with repo and collateral platforms in Japan and abroad (release PDF). The group targets a November 2026 kickoff and another interim summary in spring 2027. Japanese outlet あたらしい経済 reported the same sandbox and timetable on Oct. 23, and CoinPost reported that the sandbox will sit on Canton Network's test network and that Progmat CEO Tatsuya Saito framed the test as whether on-chain repo with tokenized JGBs makes economic sense for financial firms and institutional investors.

The summary sizes the JGB repo market at more than JPY 250 trillion and targets post-trade processing for bilateral repo that is not cleared through a central counterparty. It proposes an added "digital-asset annex" to the existing Gensaki and GMRA master agreements rather than a new master agreement (release PDF). The interim report deck names Canton only for the sandbox (interim report).

The release gives the working group's reasons for starting now. It cites a Broadridge announcement that repo run on Broadridge's distributed ledger averaged USD 365 billion a day in July 2026, USD 8 trillion for the month, and says the U.S. Depository Trust & Clearing Corporation has announced a tokenization service for Treasuries and other assets held at DTC, which it describes as equivalent to USD 114 trillion and scheduled to launch shortly (release PDF). It puts the domestic tokenization market at about JPY 0.8 trillion in assets under management (release PDF).

For the bonds themselves, the summary's primary approach manages the book-entry JGB on-chain through an "on-chain management account" synchronized with the ledger, which it says changes only the management method while preserving the instrument's legal nature as a book-entry security. The group would start with on-chain transactions under a single direct account management institution, which does not require linkage to the central securities depository, the Bank of Japan, and would study cross-institution transfers in parallel (release PDF). CoinPost reported Saito's explanation that the main proposal leaves the legal nature of the bonds unchanged and ties only the record-keeping to the blockchain. The short-term repo use cases it names are cross-border and intraday transactions, including parties that cannot use the Bank of Japan's intraday overdraft, such as non-residents and funds (release PDF).

Phase 1 participants include BlackRock Japan, MUFG Bank, Mizuho Bank, Sumitomo Mitsui Banking Corporation, JPX Market Innovation & Research, Osaka Digital Exchange, Broadridge Japan, Datachain, Digital Asset Holdings, which leads Canton development, and Ava Labs, listed among the "public-blockchain-related organizations" (release PDF). Avalanche's July post had said the working group was weighing public-chain technologies and named Avalanche among them (Avalanche).

How the two fit

The interim summary describes a design meant to accommodate "multiple DLTs with differing standards," with the authoritative account record held on a separate 24/7 system synchronized to the ledger (release PDF). Progmat's securities stay on Avalanche. The repo workstream starts on Canton. For the Avalanche Foundation ecosystem, the sources show an existing institutional book on the L1 and a second, newer workstream whose first environment is elsewhere. A related earlier read is in our analysis of a Korean brokerage built on Avalanche.

What the sources do not say

The release says specific linkage partners "will be announced separately." None are named yet. No source says whether Avalanche will or will not connect to the sandbox, and none gives volumes, participant counts or cost for the repo phase beyond a cost-sharing term for sandbox participants (release PDF).