Japanese Institutional Investors Show Growing Interest in Crypto

A survey conducted by Nomura and its digital asset arm, Laser Digital, indicates a significant shift in attitudes towards crypto investment in Japan, with nearly 80% of institutional investors planning to invest in crypto within the next three years. This shift is driven by the growing perception of crypto as a valuable tool for diversification, with many respondents citing low correlation with traditional assets as a key reason for investment. While allocations are expected to be restrained, with over half of respondents targeting allocations between 2% and 5% of their portfolios, the overall sentiment towards crypto is improving, with 31% of respondents describing their outlook as positive, up from 25% in 2024. The survey's findings are supported by Japan's established regulatory framework for digital assets, which has helped foster a domestic crypto ecosystem. Major companies such as SBI Holdings and bitFlyer are anchoring this ecosystem, and traditional financial institutions are also entering the industry. The survey also reveals that investors are becoming increasingly interested in income-generating strategies such as staking and lending, as well as derivatives and tokenized assets, with over 60% of respondents expressing interest in these areas. Stablecoins are another area of focus, with 63% of respondents identifying potential use cases such as treasury management and cross-border payments. While challenges such as regulatory uncertainty and high volatility remain, the survey suggests that institutions are now focused on how to invest in crypto, rather than whether to invest at all.