The Japanese government plans to promote the issuance of local government bonds "on-chain," and may submit relevant legislation in 2026.

PANews reported on December 23 that, according to Nikkei, the Japanese government plans to submit a bill in 2026 to promote the digital securitization of local government bonds using blockchain technology. This initiative aims to achieve rapid, intermediary-free issuance and settlement of bonds, and to provide real-time access to investor information. Possible solutions include using local bank stablecoins to pay interest and granting investors the right to use local facilities, balancing monetary, incentive, and social returns, potentially opening a new path for low-cost local government financing.