The perception of digital assets among institutional investors is undergoing a significant shift, with improving sentiment and the emergence of new use cases driving adoption, according to a recent survey conducted by Nomura, a Tokyo-based bank, and its crypto-focused division, Laser Digital. The survey, which gathered responses from over 500 investment professionals in Japan, found that 31% of respondents now hold a positive view of crypto for the upcoming year, representing a 6% increase from 2024. Concurrently, negative sentiment has decreased, indicating a gradual change in perception as the asset class continues to mature. A key theme emerging from the survey is the role of diversification, with 65% of respondents viewing crypto as a means to diversify their portfolios, and 79% of those considering investment planning to do so within the next three years.
However, the majority anticipate modest allocations, typically ranging from 2% to 5%, suggesting that institutions are still in the early stages of adopting digital assets. This shift is supported by evolving regulatory and policy environments.
In Japan, policymakers have spent the past year refining crypto frameworks, including discussions on classification, taxation, and investor protections. Globally, clearer regulations in major markets, alongside the approval and expansion of crypto investment products such as exchange-traded funds (ETFs) and tokenized assets, have reduced some of the uncertainty that previously deterred institutions.
As a result, interest in digital assets is expanding beyond mere price exposure, with over 60% of respondents expressing 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, including treasury management, cross-border payments, and investment in tokenized securities.
Despite the progress, challenges persist, including concerns over volatility, counterparty risk, and the lack of established valuation frameworks, which continue to hinder adoption. Regulatory uncertainty, although improving, has not been completely alleviated. Nevertheless, the survey indicates a shift in the conversation, with institutions increasingly focusing on how to invest in crypto rather than whether to do so, signifying that digital assets are moving closer to becoming a standard component of institutional portfolios.