Japan to pursue tokenization of local government bonds

The Japanese government is pursuing legislation to permit the tokenization of local government bonds using blockchain technology, Coindesk Japan reported. The government plans to gather opinions from local authorities by 2026 and submit a bill to the Diet during its regular session that same year. Local experts believe the policy could offer new benefits, such as providing facility usage rights by linking the tokenized bonds with stablecoins or other tokens issued by regional financial institutions.