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

A recent survey conducted by Nomura and its digital asset arm, Laser Digital, indicates that attitudes towards cryptocurrency investment in Japan are evolving from cautious interest to proactive portfolio planning. Almost 80% of the country's institutional investors plan to add cryptocurrency to their portfolios over the next three years, driven by the perception of crypto as a valuable diversification tool. The primary reason cited for this shift is the low correlation between crypto and traditional asset classes. However, allocations are expected to remain modest, with over half of respondents aiming to allocate between 2% and 5% of their portfolios to digital assets. Improving sentiment is also evident, with 31% of respondents describing their outlook on crypto as positive, up from 25% in 2024, while negative sentiment has declined to 18%. These findings emerge as Japan continues to refine its regulatory framework for digital assets, one of the most established among major economies. The country's early adoption of crypto exchange regulations following the Mt. Gox collapse in 2014 has helped foster a domestic crypto ecosystem, with major companies such as SBI Holdings and bitFlyer playing key roles. Traditional financial institutions are also entering the industry, with Nomura founding Laser Digital in 2022 to expand into trading, asset management, and venture investing. Over 60% of respondents expressed interest in income-generating strategies, including staking, lending, derivatives, and tokenized assets, indicating a shift towards treating crypto as a comprehensive financial toolkit rather than a speculative trade. Stablecoins are another area of focus, with 63% of respondents identifying potential use cases such as treasury management, cross-border payments, and foreign exchange transactions. While challenges including 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. The survey, conducted in December and January, gathered responses from 518 investment professionals, including institutional investors, family offices, and public-interest organizations.