How AI and Practical Blockchain are Transforming "Heavy Industries" and Accelerating Talent Mobility - What Domain Understanding is Required of Engineers 【Event Report】 | CoinDesk JAPAN

Heavy industries, which serve as the foundation supporting social infrastructure such as finance, real estate, and manufacturing, are now experiencing a quiet transformation through AI and Practical Blockchain. In sectors that have been supported by complex and long-established mechanisms, digitization has been considered difficult; however, with the combined effects of AI and Practical Blockchain, the traditional business processes and the very structure of the industry are being rewritten from the ground up. This movement goes beyond mere technological innovation and raises new questions about the roles and career paths of engineers, who are particularly the technicians.

N.Avenue, which operates CoinDesk JAPAN, held an online event on May 8 titled "How Will Engineers' Careers Evolve by Moving 'Heavy Industries' with AI and Practical Blockchain?" They invited three companies engaged in advanced product development and system design in various fields to discuss the utilization of Web3, its social significance, and the perspectives and skill sets required of engineers.

The speakers included Tatsuya Saito, Founder and CEO of Progmat, which aims to reconstruct financial infrastructure; Yoshinori Fukushima, CEO of LayerX, which promotes business transformation through AI; and Tomohiro Nitta, Engineering Manager of Detachain, which is working on the development of next-generation cross-border payment platforms. The moderator was Yuki Kamimoto, CEO of N.Avenue/CoinDesk JAPAN.

The "Great Migration" to Heavy Industries that Do Not Conclude Digitally

Mr. Fukushima from LayerX stated at the beginning that the term "heavy industry" is his own creation and explained that it refers to industries that cannot be completed solely with digital or software.

Referring to his experience in developing news apps at Gunosy in the past, he pointed out that while light industries can complete the entire process from information gathering to distribution within an app, heavy industries still have paper-based tasks and human involvement, such as contracts and expense settlements, which makes it difficult to rely solely on software. "There is a need for society as a whole to smooth out these areas digitally," he stated.

He began to focus on heavy industries around 2018. With the proliferation of smartphones, toC-oriented startups targeting general users have experienced growth, and the room for technological innovation has narrowed. On the other hand, the BtoB domain between companies and social infrastructure industries still retain old-fashioned structures, and he felt there is room for the application of new technologies. In particular, he stated that since 2022, a "great migration of engineers" has occurred as they shift their active roles to areas where old-fashioned structures remain.

The company also mentioned its specific products, explaining that the AI cloud service "Bakuraku" streamlines expense reimbursement and invoice processing tasks through AI, allowing users to have a smooth experience without being aware of the AI's presence. It stated that its mission is to "digitalize all economic activities" and that it is developing AI SaaS and AI DX businesses.

Record Keeping and Practical Blockchain

Mr. Saito of Progmat pointed out that the perception of AI and Practical Blockchain in the financial industry has significantly changed since around 2018, reflecting on the process of how technology has permeated society.

2016-2017, during the Fintech boom, financial institutions were exploring the use of AI and Practical Blockchain, but AI was limited to applications that streamline existing operations like chatbots and credit assessments, and Practical Blockchain was still at the stage of being discussed as a "technology that can be used beyond Bitcoin."

However, the fact that "record-keeping," which is the essence of finance, can be secured without relying on the trust of financial institutions has attracted attention, and discussions on the use of blockchain have begun in the financial industry from the perspective of avoiding the risk of not using it and developing new businesses. He points out that from around 2022, digitally complete operations and transactions are becoming a reality due to the evolution of generative AI, and the choice of infrastructure, whether it is a traditional banking system or blockchain, is being questioned again.

He also revealed that concepts such as "automated money" and "programmability" had been shared since his time at Mitsubishi UFJ Trust and Banking Corporation, stating that "we are still at the second stage of climbing the mountain," but emphasized that those concepts are steadily progressing. He mentioned that overseas, developments are advancing mainly in cross-border payments, and in Japan, where legal frameworks have been established, he projected that it will enter the implementation phase depending on the ideas of the businesses.

The Role of Financial Institutions as "Instruments"

Progmat aims to digitize all types of assets and rights, including real estate, privileges, and payment methods, by building a foundational platform that can issue and operate ST (Security Tokens), UT (Utility Tokens), and SC (Stablecoins) on the Practical Blockchain.

The domestic ST market is expanding, and since the launch of real estate ST in 2021, the outstanding balance has exceeded 315 billion yen. In the future, the demand for SC as a payment method for ST is also expected to grow, presenting significant potential. The company announced a capital partnership with Agricultural Bank of Japan, Aozora Bank, and Kenedix in April 2025.

Related Articles: [ST Frontier] Progmat, the Background of Expanding Capital Partnerships ── Changing Trust and Investment Experience, 4 Companies Looking Towards Next-Generation Finance

Mr. Saito stated regarding the role of financial institutions that "tokenization does not mean that banks themselves become unnecessary," emphasizing that "financial institutions, as licensed 'entities', are essential for the proper management and issuance of tokens." For instance, he explained that in ST, it is legally required to have a shareholder registry manager and a bond administrator, and that developed countries are in agreement that an issuance license will also be necessary in SC.

Improving International Remittances with Cross-Chain Technology

Mr. Nitta from Detachain shifted his focus to the Practical Blockchain field about a year ago, seeking a business that scales globally. He mentioned that there are differences between public chains and private chains, and expressed his attraction to the premise that "everyone manages a single system, and data is placed in a location accessible to anyone," which is different from traditional enterprise systems.

! The company securely connects multiple blockchains as a single network, We are promoting the development and practical application of "cross-chain technology" that enables the exchange of value. As a business, we are developing an international remittance solution that uses SC to improve the issue of cost and remittance speed, and a "cross-chain bridge" that enables asset exchange between different blockchains. For the first seven years since its founding, the company has mainly engaged in R&D (research and development), and commercialization has been in full swing in the past two years. Based on its own technology, it aims to build a new financial infrastructure and introduce blockchain to heavy industries.

In discussing the technologies used in cross-chain development, it was mentioned that Web-based technologies are also combined, and except for a few cutting-edge areas, it is a familiar field for many engineers.

Understanding of Industry Domains and Engineer-led Proposal Power

In the latter part of the session, opinions were also exchanged about the roles and qualities required of engineers in the future.

Mr. Fukushima pointed out that in the past, the ability to efficiently expand and provide services in the toC domain (scalability) was emphasized, but now the ability to understand business knowledge and structure it as software has become a valuable skill. With the proliferation of AI technologies like ChatGPT making access to knowledge easier, it is now essential to adopt an attitude of "knowledge is abundant just outside the door" and proactively learn industry expertise while working on problem-solving.

Mr. Saito referred to the talents active at Progmat and stated that they are looking for individuals who can think beyond fixed notions like "I am on the business side" or "I am on the tech side," and can bridge both. Even engineers, if they have an understanding of the industry domain, may have the potential to broaden their scope of activity as Product Managers (PDMs).

! Nitta said, He pointed out that since a technology that has not yet been generalized, such as blockchain, has not yet been applied to business, there is a lot of room for engineers to propose their own proposals and explore ways to utilize it. In general web development, many engineers get bored because they "know how to do it," but in the new technology field, where there are many unexplored fields, intellectual curiosity is stimulated, and there are plenty of opportunities for growth and challenge.

Now Hiring Engineers at Progmat, a Place for Challenges and Growth

In addition, Progmat is planning to expand its workforce to about 50 people, with 60% of those positions expected to be filled by engineers. Mr. Saito explained that they are looking for self-motivated individuals who prioritize overall optimization and long-term vision, presenting three values: "Virtue", "Wildness", and "Practical Execution".

For more details on Progmat's engineer recruitment, click here. In terms of working style, it was stated that the basic approach is full remote work, while gathering at the office as needed, and it was revealed that stock options are granted to all employees. It clearly emphasizes "profit sharing."

"Regarding engineers, while knowledge and experience in finance and Practical Blockchain are not required, as the forefront of moving heavy industries in the AI era, I want to actively hire highly curious individuals who do not rigidly define their positions and are willing to step into business processes as 'ambidextrous' as needed," he said, showing a willingness to recruit a wide range of engineers.