Majority of Japan's Institutional Investors to Invest in Crypto Within Three Years

A recent survey conducted by Nomura and Laser Digital reveals a significant shift in Japan's institutional investors' attitudes towards cryptocurrency investment, with nearly 80% planning to invest in crypto over the next three years. This change reflects a growing perception of crypto as a means of diversifying portfolios, with many respondents citing its low correlation with traditional assets as a primary reason for investment. Although allocations are expected to be limited, with over half of respondents targeting allocations between 2% and 5% of their portfolios, the survey indicates improving sentiment towards crypto, with 31% of respondents expressing a positive outlook, up from 25% in 2024. Japan's established regulatory framework for digital assets has contributed to this shift, with recent efforts focused on integrating digital assets into existing financial laws. As a result, a thriving domestic crypto ecosystem has emerged, with major companies such as SBI Holdings and bitFlyer operating in the space. Traditional financial institutions have also begun to enter the industry, with Nomura founding Laser Digital in 2022 to expand into crypto trading, asset management, and venture investing. The survey found that over 60% of respondents are interested in income-generating strategies such as staking and lending, as well as derivatives and tokenized assets, indicating a growing recognition of crypto's potential as a broader financial tool. Additionally, 63% of respondents identified potential use cases for stablecoins, including treasury management and cross-border payments. While challenges such as regulatory uncertainty and high volatility remain, the survey suggests that institutional investors are now focused on how to invest in crypto, rather than whether to do so.