Japanese Institutional Investors Show Growing Interest in Crypto Adoption

Japan's institutional investors are increasingly embracing crypto investments, shifting from a cautious approach to active planning, according to a survey conducted by Nomura and Laser Digital. Approximately 80% of respondents plan to incorporate crypto into their portfolios over the next three years, driven by the perception of crypto as a valuable diversification tool due to its low correlation with traditional assets. While allocations are expected to be modest, ranging between 2% and 5% of their portfolios, the trend signifies a notable change in attitude. The survey also reveals improving sentiment towards crypto, with 31% of respondents holding a positive outlook, up from 25% in 2024, and negative sentiment decreasing to 18%. These findings emerge as Japan continues to refine its regulatory framework for digital assets, providing clarity that has fostered a domestic crypto ecosystem. Major companies such as SBI Holdings and bitFlyer, along with traditional financial institutions, are contributing to the growth of the industry. The interest in crypto extends beyond price speculation, with over 60% of respondents expressing interest in income-generating strategies and derivatives. Stablecoins are also gaining attention, with 63% of respondents identifying potential use cases such as treasury management and cross-border payments. Despite remaining challenges, including valuation frameworks and regulatory uncertainty, investors are now focused on the how of crypto investment rather than the whether.