Progmat, Kenedix and partners complete proof of concept for real estate token settlement

Progmat, Kenedix, KDX ST Partners and Datachain have completed the first phase of a proof of concept for a real estate security token trading framework that uses public blockchains and stablecoins in Japan. The test verified cross-chain delivery-versus-payment settlement, allowing security tokens and payment tokens to be exchanged simultaneously within a single wallet, and the consortium is targeting a commercialization decision by the end of 2026. In the first phase, real estate security tokens were issued on Avalanche's public C-Chain through Progmat's issuance and management platform, while the stablecoins used for settlement were issued on an Avalanche Layer 1 chain based on a trust-type standard envisioned by Sumitomo Mitsui Financial Group. Progmat and Datachain supplied the cross-chain settlement mechanism. KDX ST Partners acted as asset manager for the issuing fund, Kenedix served as the investor and stablecoin user, and the test used prototype tokens and a prototype wallet. The consortium said the model is designed to support instant settlement and improve capital efficiency in Japan's real estate security token market, where conventional transactions sold by securities firms can take two business days to settle, according to a July 30 Nikkei report. The group also plans a second proof of concept focused on allowing investors to borrow stablecoins around the clock using their security token holdings as collateral, extending tokenized real estate beyond issuance and distribution into lending and leverage structures.