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

A survey conducted by Nomura and its digital asset subsidiary, Laser Digital, indicates a significant change in attitude among Japan's institutional investors, with nearly 80% planning to incorporate cryptocurrency into their portfolios over the next three years, driven by a growing recognition of crypto's potential as a diversification tool due to its low correlation with traditional assets. The majority of respondents, over 50%, intend to allocate between 2% and 5% of their portfolios to digital assets, reflecting a cautious yet increasing interest in crypto. Furthermore, the survey reveals improving sentiment towards crypto, with 31% of respondents expressing a positive outlook, up from 25% in 2024, while negative views declined to 18%. These findings coincide with Japan's ongoing refinement of its regulatory framework for digital assets, which has been in place since the country became one of the first to regulate crypto exchanges following the 2014 Mt. Gox collapse. The regulatory clarity has contributed to the growth of a domestic crypto ecosystem, with major companies such as SBI Holdings and bitFlyer, as well as traditional financial institutions, increasingly involved in the industry. The survey also indicates a broadening interest in crypto beyond mere price speculation, with over 60% of respondents expressing interest in income-generating strategies like staking, lending, and tokenized assets, suggesting that investors are beginning to view crypto as a comprehensive financial tool. Moreover, stablecoins have emerged as an area of focus, with 63% of respondents identifying potential use cases such as treasury management and cross-border payments, and indicating a preference for stablecoins issued by major financial institutions. Despite remaining challenges, including the lack of established valuation frameworks and regulatory uncertainty, the survey suggests that institutional investors are shifting their focus from whether to invest in crypto to how to do so, with the survey gathering responses from 518 investment professionals between December and January.