Japanese Institutional Investors Show Growing Interest in Crypto Investments

In Japan, the perception of crypto investments is transitioning from cautious observation to proactive portfolio management, as revealed by a survey conducted by Nomura and its digital asset subsidiary, Laser Digital. Almost 80% of the country's institutional investors plan to incorporate crypto into their portfolios over the next three years, driven by the view of crypto as a tool for diversification. The primary reason cited for this shift is the low correlation between crypto and traditional asset classes, allowing for greater portfolio diversification. However, the allocations are expected to be modest, with over half of the respondents aiming to allocate between 2% and 5% of their portfolios to crypto. The survey also notes an improvement in sentiment towards crypto, with 31% of respondents expressing a positive outlook, up from 25% in 2024, and a decline in negative sentiment to 18%. These findings emerge as Japan continues to refine its regulatory framework for digital assets, providing clarity that has fostered the growth of a domestic crypto ecosystem. Major companies such as SBI Holdings and bitFlyer are anchoring this ecosystem, with traditional financial institutions also entering the industry. The interest in crypto extends beyond mere price speculation, with over 60% of respondents expressing interest in income-generating strategies like staking, lending, derivatives, and tokenized assets. Stablecoins are another area of focus, with 63% of respondents identifying potential use cases such as treasury management and cross-border payments. Despite the growing interest, challenges persist, including the lack of established valuation frameworks, counterparty risks, and regulatory uncertainty. Nonetheless, the survey suggests that institutions are now focused on how to invest in crypto, rather than debating whether to do so.