According to Nada News, Japan's Ministry of Finance held the first meeting of the 'Sovereign Bond On-Chain Response Study Group' as scheduled on October 8, officially proposing three models for tokenizing Japanese Government Bonds (JGBs). These include: tokenizing the beneficiary certificates of money market funds (MMFs) backed by government bonds for on-chain circulation (Type 1), integrating the account book-entry system into blockchain under the current electronic settlement framework (Type 2), and issuing new native on-chain government bonds outside the existing settlement system (Type 3). The Ministry of Finance stated that tokenization could improve collateral and liquidity management efficiency, strengthen the stable absorption capacity of the government bond market, and enhance international competitiveness. However, it also faces challenges such as liquidity fragmentation, price volatility spillovers caused by 24/7 trading, and system transformation costs. The official plan is to compile a formal research report after in-depth hearings by around January 2027. https://www.(wublock123.com)/news/japan-finance-ministry-sovereign-bond-tokenization-3-models-2027-report-69740