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

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

Experts point out that digital local bonds based on blockchain technology can achieve rapid issuance and settlement without intermediaries, and can provide real-time access to investor information. This model can combine various forms of returns, such as monetary returns, non-monetary benefits, and social contributions, and is expected to serve as a tool for direct financing for individuals.