The adoption of digital assets is gaining momentum among institutional investors, driven by improving sentiment and the emergence of new use cases, according to a recent survey conducted by Nomura, a Tokyo-based bank, and its cryptocurrency division, Laser Digital. The study, which compiled responses from over 500 investment professionals in Japan, found that 31% of respondents now have a positive outlook on cryptocurrency over the next year, marking an increase from 25% in 2024. Conversely, negative sentiment has decreased, indicating a gradual shift in perception as the asset class continues to mature.

Diversification has emerged as a key theme, with 65% of respondents viewing cryptocurrency as a means to diversify their portfolios. Furthermore, 79% of those considering investment in cryptocurrency plan to do so within the next three years.

Most institutions anticipate allocating between 2% and 5% of their portfolios to cryptocurrency, suggesting that they are still in the early stages of adoption. This shift is supported by a changing regulatory landscape.

In Japan, policymakers have spent the past year refining cryptocurrency frameworks, including discussions on classification, taxation, and investor protection. Globally, clearer regulations in major markets, coupled with the approval and expansion of cryptocurrency investment products such as exchange-traded funds (ETFs) and tokenized assets, have reduced some of the uncertainty that previously deterred institutions from investing.

As a result, interest in cryptocurrency is expanding beyond simple price exposure. Over 60% of respondents expressed interest in staking, lending, derivatives, and tokenized assets, reflecting a growing demand for yield-generating strategies and more sophisticated portfolio construction. Stablecoins are also gaining traction, with 63% of respondents identifying potential use cases ranging from treasury management to cross-border payments and investment in tokenized securities.

Despite this, challenges persist. Concerns over volatility, counterparty risk, and the lack of established valuation frameworks continue to hinder adoption.

While regulatory uncertainty is improving, it has not been completely alleviated. Nevertheless, the survey suggests a shift in the conversation.

Rather than debating the merits of investing in cryptocurrency, institutions are increasingly focused on how to invest in it, indicating that digital assets are moving closer to becoming a standard component of institutional portfolios.