{"id":904554,"date":"2026-05-09T05:12:52","date_gmt":"2026-05-09T10:12:52","guid":{"rendered":"https:\/\/newsycanuse.com\/index.php\/2026\/05\/09\/avalanche-targets-japans-1-6t-bond-market-with-progmat-collaboration\/"},"modified":"2026-05-09T05:12:52","modified_gmt":"2026-05-09T10:12:52","slug":"avalanche-targets-japans-1-6t-bond-market-with-progmat-collaboration","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2026\/05\/09\/avalanche-targets-japans-1-6t-bond-market-with-progmat-collaboration\/","title":{"rendered":"Avalanche Targets Japan\u2019s $1.6T Bond Market With Progmat Collaboration"},"content":{"rendered":"<div id=\"main\">\n<p><img width=\"1312\" height=\"736\" src=\"https:\/\/www.cryptoninjas.net\/wp-content\/uploads\/avalanche-progmat.jpeg\" alt=\"avalanche-progmat\" decoding=\"async\" fetchpriority=\"high\"><\/p>\n<div>\n<p><strong>Key Takeaways:<\/strong><\/p>\n<ul>\n<li aria-level=\"1\"><span>Avalanche and Progmat are initiating a long-term campaign to shift the Japanese government bond repo business onto-chain.<\/span><\/li>\n<li aria-level=\"1\"><span>Stablecoin settlement, DeFi-powered repo transactions and tokenized Japanese Government Bonds (TJGBs) are included in the project.<\/span><\/li>\n<li aria-level=\"1\"><span>There are more than $2 billion in tokenized securities already on a Progmat platform, powered by its infrastructure on the Avalanche chain.<\/span><\/li>\n<\/ul>\n<p><span>The country\u2019s huge government bond market is the latest to gain traction in blockchain\u2019s finance revolution. Avalanche and Progmat are currently aggressively advocating for the modernization of repo transactions via tokenized bonds, stablecoins and a recently built onchain settlement technology geared towards institutions.<\/span><\/p>\n<p><span>Commercial deployment is slated for 2026, and the initiative may well be one of the biggest real world asset tokenization in Asia if it goes into effect.<\/span><\/p>\n<h2><span id=\"Avalanche_and_Progmat_Launch_Tokenized_JGB_Initiative\"><\/span>Avalanche and Progmat Launch Tokenized JGB Initiative<span><\/span><\/h2>\n<p><span>Progmat <\/span><span>announced<\/span><span> the creation of the \u201cTokenized JGB\/On-Chain Repo Working Group\u201d under the Digital Asset Co-Creation Consortium, which includes more than 330 member organizations.<\/span><\/p>\n<blockquote>\n<p dir=\"ltr\" lang=\"en\">This framework will enable 24\/7, cross-border, T+0 position opening and closing, thereby promoting greater participation by institutional investors.<\/p>\n<p>\u25bcFor more details:<a href=\"https:\/\/t.co\/DhhCjYVumT\" data-wpel-link=\"external\" target=\"_blank\" rel=\"nofollow noopener\">https:\/\/t.co\/DhhCjYVumT<\/a><\/p>\n<p>\u2014 Progmat,Inc. (@progmat_en) <a href=\"https:\/\/twitter.com\/progmat_en\/status\/2052541418145747213?ref_src=twsrc%5Etfw\" data-wpel-link=\"external\" target=\"_blank\" rel=\"nofollow noopener\">May 8, 2026<\/a><\/p>\n<\/blockquote>\n<p><span>The group will research the tokenization and use of JGBs as collateral in blockchain-based Repo transactions settled with Stablecoins and also consider its future development.<\/span><\/p>\n<p><span>Avalanche <\/span><a href=\"https:\/\/x.com\/avax\/status\/2052543655144247380?s=20\" data-wpel-link=\"external\" target=\"_blank\" rel=\"nofollow noopener\"><span>emphasized<\/span><\/a><span> that there\u2019s a massive opportunity in the market, as approximately $1.6 trillion worth of government bonds are traded in a repo market within Japan.<\/span><\/p>\n<p><span>Progmat, which runs one of Japan\u2019s biggest tokenized securities trading platforms, said the protocol will be designed to \u201cenable 24\/7 transactions by using the T+0 settlement scheme instead of the traditional T+1 settlement scheme in conventional repo markets.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.cryptoninjas.net\/wp-content\/uploads\/progmat.jpg\" alt=\"progmat\" width=\"680\" height=\"383\"><\/p>\n<p><span>Another feature of the infrastructure would enable more institutional investors to participate, who want easy access to liquidity and a better experience of dealing with their collateral, the company said.<\/span><\/p>\n<p><em><strong>Read More: <a href=\"https:\/\/www.cryptoninjas.net\/news\/mantle-tvl-explodes-230-to-755m-overtakes-avalanche-and-sui-in-defi-race\/\" data-wpel-link=\"internal\">Mantle TVL Explodes 230% to $755M, Overtakes Avalanche and Sui in DeFi Race<\/a><\/strong><\/em><\/p>\n<p><a href=\"https:\/\/crypto.games\/\" aria-label=\"970x90-cryptogames\" data-wpel-link=\"external\" target=\"_blank\" rel=\"nofollow noopener\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.cryptoninjas.net\/wp-content\/uploads\/970x90-cryptogames.gif\" alt=\"970x90-cryptogames\" width=\"970\" height=\"90\"><\/a><\/p>\n<h2><span id=\"Stablecoins_and_DeFi_Infrastructure_Move_Into_Traditional_Finance\"><\/span>Stablecoins and DeFi Infrastructure Move Into Traditional Finance<span><\/span><\/h2>\n<h3><span id=\"Japan_Eyes_Faster_Institutional_Settlement_Systems\"><\/span>Japan Eyes Faster Institutional Settlement Systems<span><\/span><\/h3>\n<p><span>The working group will discuss legal, accounting, tax, technical and operational concerns in relation to tokenization of government bonds and on-chain repo activity.<\/span><\/p>\n<p><span>The proposed structure would involve tokenizing JGBs as collateral, while the stablecoins would play the role of the cash leg of the transaction, according to Progmat. A settlement and a position management would be onchain, whereas the lending protocol and the infrastructure of decentralized finance would be doing it instead.<\/span><\/p>\n<p><span>Progmat noted some recent developments happening in the United States, including tokenisation of traditional clearing houses and repoing of U.S. Treasuries and USDC.<\/span><\/p>\n<p><span>By the end of 2024, its \u201cmarkets for repurchasing government bonds\u201d had grown to around $16 trillion at world level, comprising almost 10% of transactions in Japan, it said.<\/span><\/p>\n<p><em><strong>Read More: <a href=\"https:\/\/www.cryptoninjas.net\/news\/injective-expands-in-japan-as-goldman-sachs-founded-firm-joins-inj-validator-set\/\" data-wpel-link=\"internal\">Injective Expands in Japan as Goldman Sachs-Founded Firm Joins INJ Validator Set<\/a><\/strong><\/em><\/p>\n<\/div>\n<\/div>\n<p><a href=\"https:\/\/www.cryptoninjas.net\/news\/avalanche-targets-japans-1-6t-bond-market-with-progmat-collaboration\/\" class=\"button purchase\" rel=\"nofollow noopener\" target=\"_blank\">Read More<\/a><br \/>\n Isabella Flores<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways: Avalanche and Progmat are initiating a long-term campaign to shift the Japanese government bond repo business onto-chain. Stablecoin settlement, DeFi-powered repo transactions and tokenized Japanese Government Bonds (TJGBs) are included in the project. There are more than $2 billion in tokenized securities already on a Progmat platform, powered by its infrastructure on the<\/p>\n","protected":false},"author":1,"featured_media":904555,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[26266,4695],"tags":[],"class_list":["post-904554","post","type-post","status-publish","format-standard","has-post-thumbnail","category-avalanche","category-targets"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/904554","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=904554"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/904554\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/904555"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=904554"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=904554"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=904554"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}