The Japanese government plans to promote the digital securitization of local government bonds and will submit relevant legislation in 2026.

According to TechFlow, on December 23, citing CoinDesk and Nikkei News, the Japanese government has established a policy to promote the digital securitization (Security Token) of local government bonds issued by local municipalities. The government plans to submit relevant legislation to the regular Diet session in 2026 and will determine specific policy measures based on the needs of local governments within this month.

Experts point out that blockchain-based digital local government bonds can enable fast issuance and settlement without intermediaries and allow real-time access to investor information. This model can combine various forms of returns, such as monetary rewards, non-monetary benefits, and social contributions, and is expected to serve as a tool for direct personal financing.