Regulation· ★★★· neutral·

Japan's Finance Ministry outlines three models for tokenizing government bonds

  • —Model 1: tokenizing shares of MMFs that invest in government bonds
  • —Model 2: moving the book-entry settlement system for bonds on-chain
  • —Model 3: issuing new forms of government bonds on blockchains outside the current settlement system
  • —Risks cited include market fragmentation, faster spread of price shocks and higher system costs
Why it matters: Tokenizing the debt of the world's largest creditor could accelerate institutional adoption of blockchain and set a standard for other sovereigns.
Source: CoinDesk Japan
More on this
Regulation · Oct 5
ECB Outlines Three Models to Link Central Bank Money With Tokenized Markets
 Regulation · Sep 23
Moscow Financial Forum: Bank of Russia and Finance Ministry outline crypto regulation roadmap
 Regulation · Sep 30
Japan's Finance Ministry sets up on-chain settlement study group for JGBs