The Japanese government is promoting the digital securitization of local government bonds, and Security Tokens are expected to be implemented by 2026.

【Block Rhythm】I just saw a major news — the Japanese government has confirmed a new direction, preparing to move the bonds issued by local自治体 onto the Blockchain, realizing digitization in the form of Security Token.

This is not a trivial matter. The government plans to submit relevant bills to the regular congress in 2026 and has now begun to formulate specific plans based on the needs of various local governments.

Why is this so popular? From a technical perspective, blockchain-based local government bonds can eliminate intermediary links, achieving issuance and settlement in seconds. Investor information can also be tracked transparently in real-time, making risk management clearer.

What’s more interesting is that the forms of return have diversified. It’s not just monetary returns, but also various non-monetary perks—such as local specialty rights and social contribution points, which are innovative ways to engage. In this way, local bonds have upgraded from traditional financing tools to a new way for individuals to directly participate in local construction.

This wave of operations demonstrates, in a certain sense, the real application potential of Blockchain in the government's financial sector, and it is worth closely monitoring Japan's subsequent implementation progress.