A growing number of institutional investors are embracing digital assets, driven by improving sentiment and the emergence of new use cases, as indicated by a recent survey from Nomura and its digital asset subsidiary, Laser Digital. The survey, which gathered responses from over 500 investment professionals in Japan, found that 31% of respondents now have a positive outlook on crypto for the upcoming year, up from 25% in 2024. Meanwhile, the percentage of respondents with negative sentiments has decreased, suggesting a gradual shift in perception as the asset class matures.
A key finding is that 65% of respondents view crypto as a vital tool for portfolio diversification, with 79% of those considering investment planning to do so within the next three years. Most institutions anticipate allocating between 2% and 5% of their portfolios to crypto, indicating that they are still in the early stages of adoption. This shift is supported by changes in the regulatory landscape, including refined crypto frameworks in Japan and clearer rules in major global markets, as well as the introduction of new crypto investment products such as ETFs and tokenized assets.
As a result, institutions are looking beyond simple price exposure, with over 60% of respondents expressing interest in more complex strategies like staking, lending, derivatives, and tokenized assets. Stablecoins are also gaining popularity, with 63% of respondents identifying potential use cases such as treasury management, cross-border payments, and investment in tokenized securities.
However, challenges persist, including concerns over volatility, counterparty risk, and the lack of established valuation frameworks. Despite these challenges, the survey suggests that the conversation around crypto is evolving, with institutions increasingly focused on how to invest in digital assets rather than whether to do so, indicating that crypto is becoming a more mainstream component of institutional portfolios.