Survey Reveals 80% of Japan's Institutional Investors Intend to Invest in Cryptocurrency Within Three Years

In Japan, the approach to 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 expressed their intention to incorporate cryptocurrency into their portfolios within the next three years, driven by the perception of cryptocurrency as a tool for diversification. The primary reason cited for this shift is the low correlation between cryptocurrency and traditional asset classes. However, allocations are expected to be moderate, with over half of the respondents aiming to allocate between 2% and 5% of their portfolios to cryptocurrency. Furthermore, sentiment towards cryptocurrency is improving, with 31% of respondents expressing 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, which has been in place since the Mt. Gox collapse in 2014. The clarity provided by this framework has contributed to the growth of a domestic cryptocurrency ecosystem, with major companies such as SBI Holdings and bitFlyer playing key roles. Traditional financial institutions are also entering the industry, with Nomura establishing Laser Digital in 2022 to engage in trading, asset management, and venture investing. Additionally, firms like Mitsubishi UFJ Financial Group have been exploring tokenized deposits and stablecoins. The interest in cryptocurrency is expanding beyond mere price speculation, with over 60% of respondents expressing interest in income-generating strategies such as staking, lending, derivatives, and tokenized assets. This suggests that investors are beginning to view cryptocurrency as a comprehensive financial tool 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. The survey, conducted in December and January, gathered responses from 518 investment professionals, including institutional investors, family offices, and public-interest organizations, and indicates a shift in concerns from whether to invest in cryptocurrency to how to do so effectively.