Progmat, the Japanese security token platform founded by MUFG with several institutional backers, today announced it has completed the migration of all digital securities on its platform from the enterprise blockchain Corda to a dedicated Avalanche L1. The move covers more than ¥452 billion ($2.8 billion) in security tokens, in line with the timeline set out when the plan was unveiled in February. All existing issuances were transferred without functional changes and with minimal impact on issuers and user firms, a point Ava Labs was keen to emphasize given the tokens are live regulated securities.
While Avalanche is best known for its permissionless mainnet, that is not where the tokens now sit. Avalanche L1s are application specific blockchains with their own chosen set of validators, which can be permissioned, and are natively interoperable with the wider Avalanche ecosystem. In other words, this is not a move from a permissioned chain to a public one, but from one permissioned environment to another that offers a pathway to public chains. Notably, the announcement does not say who the validators are at launch, whether the shareholders, the firms that previously ran Corda nodes, or some other group. We asked Progmat but did not receive a response in time for publication.
The tokens are now EVM (Ethereum) compatible, opening the door to interoperability with public blockchains. The replatforming also delivers practical gains. Rights transfers are three to five times faster, with transaction finality under two seconds, and new user firms no longer require a dedicated Corda node, cutting onboarding lead times and costs. AvaCloud, the blockchain as a service business from Ava Labs, secured additional SOC 1 and SOC 2 Type II attestations to satisfy financial institution requirements.
“Migrating over ¥452 billion in regulated securities without impact on issuers or user firms is the bar that institutional infrastructure must clear,” said Nick Mussallem, CEO of AvaCloud (translated).
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