The Japanese government plans to promote the digital securitization of local government bonds and will submit a related bill in 2026.

According to a report by Nikkei, the Japanese government has finalized its policy to promote the digital securitization of local government bonds issued by local governments. The government plans to submit a related bill to the regular Diet session in 2026 and will determine specific countermeasures based on the needs of local governments this month.

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