Progmat has officially completed the migration of its security-token platform from Corda 5 to a specialized Layer 1 on Avalanche. This strategic move sees all managed security-token projects transitioning to Avalanche, while maintaining essential functions and institutional controls.
According to Progmat’s internal assessments, the speed of rights transfers has significantly improved, now running three to five times faster than previously. The migration encompasses assets worth over ¥452 billion in total, which includes various underlying securities. With this transition, Progmat's security tokens are now also compatible with the Ethereum Virtual Machine (EVM), reinforcing its position as Japan’s leading security-token platform by market share.
Under the initiative known as Project Keystone, Progmat has redesigned its system architecture so that its operations are no longer tethered to a single blockchain. A new mediator layer has been introduced, allowing for potential interoperability with other blockchains in the future, all while preserving existing processes related to issuance, ownership, and transfers. The dedicated Avalanche Layer 1 is tailored to accommodate regulations associated with financial products.
As highlighted by Progmat, the new setup is capable of processing rights transfers in record time, with Avalanche transactions achieving finality in under two seconds. While these speed figures stem from internal testing and await independent verification, they suggest a significant enhancement in operational efficiency. Notably, the migration involved shifting smart contracts from Java-based Corda code to Solidity-based EVM contracts while ensuring current functions and service requirements were preserved. This transition has been smooth, with minimal disruption for issuers, meaning existing users did not have to rebuild their products. The EVM compatibility also opens up access to Ethereum-based developer tools, though it maintains compliance with regulations preventing public access to certain securities.
AvaCloud, which underpins the dedicated Avalanche network, provides essential operational services that align with SOC 1 and SOC 2 Type II assurance standards. Additionally, a responsive system for addressing outages during off-hours has been established by Progmat and Ava Labs.
This article is for informational purposes only and does not constitute financial advice.
