A growing number of institutional investors are embracing digital assets, driven by improving sentiment and expanding use cases, as found in a recent survey conducted by Nomura, a Tokyo-based bank, and its crypto-focused arm, Laser Digital. The survey, which gathered insights from over 500 investment professionals in Japan, indicates a notable shift in perception, with 31% of respondents now holding a positive outlook on crypto for the next year, up from 25% in 2024, and a decline in negative sentiment.
A key finding is that 65% of respondents view crypto as a vital diversification tool for their portfolios, with 79% of those considering investment planning to do so within the next three years, typically allocating between 2% and 5% of their portfolio. This shift is supported by evolving regulatory frameworks, both in Japan and globally, including the introduction of clearer rules and the approval of crypto investment products such as ETFs and tokenized assets, which have helped reduce uncertainty and encourage institutional engagement. As a result, interest in digital assets is broadening beyond mere price exposure, with over 60% of respondents expressing interest in more complex strategies like staking, lending, derivatives, and tokenized assets, reflecting a growing demand for yield-generating strategies and sophisticated portfolio management. Additionally, stablecoins are gaining popularity, with 63% of respondents identifying potential use cases including treasury management, cross-border payments, and investment in tokenized securities.
However, despite this progress, challenges persist, including concerns over volatility, counterparty risk, and the lack of established valuation frameworks. Nonetheless, the survey indicates a significant shift in the conversation among institutions, from debating the merits of investing in crypto to focusing on the best approaches for doing so, signaling that digital assets are increasingly being considered a standard component of institutional investment portfolios.