Progmat is a Japanese infrastructure platform for issuing and managing digital assets, primarily focused on the regulated financial market. The platform has gained recognition for the tokenization of securities and real-world assets, including real estate, while its development involves some of Japan's major financial and technology companies. The ecosystem includes solutions for security tokens, utility tokens, and stablecoins, as well as tools for managing digital assets. As of 2026, Progmat continues to develop its digital securities infrastructure while expanding the use of public blockchains and exploring on-chain settlement models.
Contents
- What Is Progmat and How Has the Project Developed in Japan?
- Progmat ST and Security Tokenization
- Real Estate, Bonds, and Other Tokenized Assets
- Blockchain Infrastructure for Tokenized Assets
- Regulation, Market Development, and the Future of Progmat
1. What Is Progmat and How Has the Project Developed in Japan?
Progmat was initially developed by Mitsubishi UFJ Trust and Banking Corporation as infrastructure for issuing and recording digital assets. The project emerged as Japan established a legal framework for security tokens and financial institutions became increasingly interested in distributed ledger technology. One of its main objectives was to combine traditional securities issuance processes with the capabilities of tokenization.
In October 2023, Progmat Inc. was established as a separate company, with Tatsuya Saito serving as its founder and CEO. Its shareholders included Mitsubishi UFJ Trust and Banking Corporation, NTT DATA, Mizuho Trust & Banking, Sumitomo Mitsui Trust Bank, Sumitomo Mitsui Financial Group, SBI PTS Holdings, JPX Market Innovation & Research, and Datachain. This structure separated the platform's development from a single banking group and transformed it into a collaborative industry initiative.
Progmat does not focus on issuing its own investment cryptocurrency. Instead, it develops technological infrastructure that financial institutions and other market participants can use to create, issue, and manage tokenized assets. The project is therefore closer to institutional blockchain infrastructure than to conventional DeFi protocols or public cryptocurrency networks.
The Digital Asset Co-Creation Consortium has also developed around the platform. It brings together banks, brokers, technology companies, and other organizations working on standards and use cases for digital assets. In 2026, Progmat's official website reports more than 350 participating companies, reflecting the industry-wide nature of the initiative.
2. Progmat ST and Security Tokenization
One of the core components of the ecosystem is Progmat ST, an infrastructure solution for security tokens, or digital securities. Under this model, a token represents a legally structured property or financial right, while distributed ledger technology is used to store and process related data. Unlike most crypto assets, security tokens remain part of the regulated securities market.
Japan significantly updated the legal framework for this segment in 2020. Digital rights that meet the criteria established by law fall under the Financial Instruments and Exchange Act. As a result, issuing tokenized securities requires the involvement of regulated financial institutions and compliance with requirements related to offerings, disclosure, and investor protection.
Progmat ST can be used for the following processes:
- creating and issuing security tokens;
- maintaining records of investors' rights;
- processing transactions involving digital securities;
- tokenizing rights linked to real-world financial assets;
- facilitating interaction between issuers, banks, and brokers;
- managing data throughout the lifecycle of an issuance;
- supporting infrastructure for the secondary trading of digital assets.
In practice, Progmat ST has become one of the notable infrastructures in Japan's digital securities market. According to the project's own statistics, dozens of ST issuances worth hundreds of billions of yen had been conducted through Progmat by 2026. In this model, tokenization is not intended to bypass traditional regulation but to move regulated financial instruments into digital infrastructure.
A potential advantage of this approach is the automation of record-keeping and interaction between market participants. However, blockchain technology alone does not eliminate legal, operational, or investment risks. The rights of token holders ultimately depend on the structure of the specific financial instrument and applicable Japanese legislation.
3. Real Estate, Bonds, and Other Tokenized Assets
Real estate tokenization became one of the first large-scale applications of Progmat. In 2021, the infrastructure was used in a public offering of an asset-backed security token in Japan. In such structures, an investment asset or related rights are placed within a legal framework, while the digital token represents the corresponding rights of the investor.
Larger transactions were subsequently conducted through Progmat. For example, a 2022 STO transaction was linked to a logistics property in Atsugi valued at approximately ¥14.6 billion. The total value of the security tokens issued was approximately ¥6.9 billion. The platform was later used for other types of real estate, including residential, hotel, logistics, and commercial properties.
| Category | Example of Use | Role of Tokenization |
|---|---|---|
| Real Estate | Residential, office, hotel, and logistics properties | Digital representation of investment rights |
| Bonds | Digital debt instruments | Digital infrastructure for recording issuance and investor rights |
| Investment Products | Funds and structures backed by real-world assets | Tokenization of regulated financial rights |
| Utility Tokens | Digital rights and privileges | Additional functionality for ecosystem participants |
| Stablecoins | Digital settlement assets | Potential settlement for on-chain transactions |
The range of applications has gradually expanded beyond real estate. Digital bonds have been issued using Progmat infrastructure, while ecosystem working groups have explored tokenized equities, overseas real estate, RWA, and other asset categories. Projects involving tokenized Japanese government bonds and repo transactions are also being developed in 2026.
Tokenization does not change the underlying economic characteristics of an asset. Real estate returns still depend on rental income and property values, while bond risks depend on the issuer and the terms of the instrument. In this model, blockchain primarily changes the infrastructure used for record-keeping, transfer of rights, and settlement.
4. Blockchain Infrastructure for Tokenized Assets
Early versions of Progmat were designed around the requirements of institutional financial markets. Corda was used as one of the underlying technologies, enabling distributed data exchange between designated participants while restricting access to confidential information. This approach aligned with the requirements of banks and operators of regulated financial instruments.
However, the project's architecture continues to evolve. In February 2026, Progmat, Ava Labs, and Datachain announced a strategic collaboration focused on using public blockchains within financial infrastructure. In July 2026, Progmat announced the completion of its Avalanche integration and the migration of digital securities issued through the platform with a total value exceeding ¥452 billion.
The ecosystem extends beyond Progmat ST. Progmat UT is designed for utility tokens, while the Progmat Coin concept is being developed as infrastructure for issuing regulated stablecoins. Another area of development involves wallets and digital asset management systems. Together, these components create an architecture in which different forms of tokenized value can operate through compatible processes.
The connection between security tokens and settlement assets is particularly important. When a digital security and a payment asset operate within a compatible blockchain environment, it becomes technically possible to automate the exchange of assets for money. Progmat working groups have explored models in which ST settlements are conducted using stablecoins, reducing the gap between the transfer of a digital security and the corresponding payment.
In 2026, this direction is also expanding into institutional use cases. Progmat projects include research into on-chain repo transactions involving tokenized Japanese government bonds and stablecoins. These experiments demonstrate a shift from simply tokenizing individual assets toward bringing more complete financial transactions onto distributed networks.
5. Regulation, Market Development, and the Future of Progmat
Progmat's development is closely connected with Japan's regulatory framework. Security tokens are governed by financial instruments legislation, while the regulatory framework for stablecoins was expanded following amendments to the Payment Services Act that took effect in 2023. This creates an institutional model in which tokenization is integrated into the existing financial system rather than operating separately from it.
Key participants in the ecosystem include Mitsubishi UFJ Trust and Banking, Mizuho Trust & Banking, Sumitomo Mitsui Trust Bank, SMFG, SBI, JPX, NTT DATA, and Datachain. Their participation connects digital asset issuance and management processes with banking, brokerage, exchange, and technology infrastructure.
At the same time, several limitations remain. Security tokens require compliance with customer identification, asset custody, disclosure, and investor protection requirements. The liquidity of an individual issuance may remain lower than that of conventional exchange-traded instruments, while the transition to public blockchains introduces additional requirements related to security, network interoperability, and transaction management.
The next stage of development is focused on closer integration between tokenized securities, stablecoins, and public blockchain networks. Progmat working groups are exploring tokenized equities, fully on-chain digital securities models, RWA, and the use of ST holder data, while individual initiatives also cover government bonds and repo transactions.
Overall, Progmat is not a standalone token but an infrastructure project for the regulated tokenization of financial assets in Japan. Its practical applications already include real estate, debt instruments, and other digital securities, while its architecture is evolving toward public blockchains and on-chain settlement. For the RWA market, Progmat represents a notable example of how tokenization technology can be integrated with existing financial regulation and traditional institutional infrastructure.
