Are Japanese local bonds going on-chain? We'll find out in 2026.

[Block Rhythm] The Japanese government is moving quite quickly. According to reports, the Japanese authorities have already set a direction and plan to digitalize local bonds issued by various local governments into security tokens. They aim to submit a bill to the regular Diet session in 2026 and finalize specific plans within this month based on the actual needs of each local government.

Why go through all this trouble? Let's hear what the experts have to say. The biggest advantage of blockchain-based digital local government bonds is—removing intermediaries. Issuance and settlement can be carried out quickly, and investor information is available in real time.

What's even more interesting is that this model can be played in various ways. It's not just about monetary returns; it can also combine non-monetary benefits and social contributions. In simple terms, investors can achieve multidimensional returns — they can make money while also contributing to the local community. This way, local bonds are expected to become a new channel for ordinary individuals to directly participate in financing.

Ultimately, this is another implementation of blockchain technology in practical financial applications. From the perspective of the crypto market, such government-level explorations are often signals of Web3 moving from the periphery to the mainstream.