Japanese Institutional Investors Show Growing Interest in Crypto

In Japan, the perception of crypto investments is transitioning from cautious observation to deliberate portfolio management, as evidenced by a survey conducted by Nomura and its digital asset subsidiary, Laser Digital. The survey reveals that nearly 80% of the country's institutional investors plan to incorporate crypto into their portfolios over the next three years, driven by the view that crypto serves as a valuable tool for diversification. The primary reason cited for this shift is the low correlation between crypto and traditional asset classes, allowing for more diverse investment portfolios. However, the allocated amounts are expected to remain modest, with over half of the respondents aiming to dedicate between 2% and 5% of their portfolios to crypto. Furthermore, the survey 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, establishing a clearer environment for the domestic crypto ecosystem. Major companies, including SBI Holdings and bitFlyer, are already actively involved in the industry, and traditional financial institutions are also entering the market. The interest in crypto extends beyond mere price speculation, with over 60% of respondents expressing interest in income-generating strategies and tokenized assets. Additionally, 63% of respondents identified potential use cases for stablecoins, including treasury management and cross-border payments, with a preference for stablecoins issued by major financial institutions. While challenges such as valuation frameworks, counterparty risks, and regulatory uncertainty persist, the focus has shifted from whether to invest in crypto to how to do so effectively.