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

In Japan, the attitude towards cryptocurrency investment is transitioning from cautious observation to active planning, as indicated by a survey conducted by Nomura and its digital asset subsidiary, Laser Digital. Almost 80% of the country's institutional investors plan to incorporate cryptocurrency into their portfolios within the next three years, driven by a growing perception 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 more diverse investment portfolios. However, the allocations are expected to be conservative, with over half of the investors aiming to allocate between 2% and 5% of their portfolios to crypto. Furthermore, the survey reveals an improvement in sentiment towards crypto, with 31% of respondents expressing a positive outlook, up from 25% in 2024, and negative sentiment declining to 18%. These findings emerge as Japan continues to refine its regulatory framework for digital assets, which is among the most established globally. The country's early adoption of crypto regulations, following the Mt. Gox collapse in 2014, has contributed to the development of a robust domestic crypto ecosystem, with major players such as SBI Holdings and bitFlyer. Traditional financial institutions are also entering the market, with companies like Nomura expanding into crypto through subsidiaries like Laser Digital. The survey, which gathered responses from 518 investment professionals, indicates that interest in crypto is expanding beyond mere price speculation, with over 60% of respondents expressing interest in income-generating strategies and derivatives. Additionally, 63% of respondents identified potential use cases for stablecoins, including treasury management and cross-border payments, with trust being highest for stablecoins issued by major financial institutions. While challenges such as valuation frameworks, counterparty risks, and regulatory uncertainty remain, the survey suggests that institutions are now focused on how to invest in crypto, rather than debating whether to do so.