Survey indicates that approximately 80% of Japan’s institutional investors intend to incorporate cryptocurrency into their portfolios within the next three years. A recent Nomura report shows that around 80% of investment professionals in the country aim to dedicate up to 5% of their assets to digital currencies by 2029.

Key Takeaways:

— Approximately 80% of Japanese institutional investors surveyed plan to invest in crypto over the next three years, primarily aiming for portfolio weights between 2% and 5%.

— Positive market sentiment and Japan’s well-defined regulatory environment are prompting institutions to view digital assets as diversification instruments rather than mere speculative ventures.

— Focus is expanding beyond direct price speculation to encompass staking, lending, derivatives, tokenized assets, and stablecoin applications, despite ongoing worries about valuation, counterparty risks, regulatory clarity, and market volatility.

According to a survey conducted by Nomura and its digital asset division, Laser Digital, attitudes toward crypto in Japan are evolving from tentative interest to concrete portfolio strategies, with nearly 80% of institutional investors planning to introduce crypto allocations within three years.

This trend highlights a growing perception of crypto as a diversification mechanism. Many respondents highlighted the low correlation between digital assets and traditional financial instruments as a primary motivation for increasing exposure. However, allocation percentages remain modest, with over half targeting between 2% and 5% of their total portfolios.

Sentiment is also improving: 31% of respondents expressed optimism about crypto, up from 25% in 2024, while negative sentiment dropped to 18%.

These findings emerge as Japan continues to refine one of the most developed regulatory frameworks for digital assets among major economies. Japan was a pioneer in regulating crypto exchanges after the 2014 Mt. Gox collapse. Recent regulatory efforts have centered on integrating digital assets into existing financial laws, including updates to the Financial Instruments and Exchange Act.

This regulatory clarity has supported a robust domestic crypto ecosystem led by major players like SBI Holdings, which operates one of Japan’s largest crypto businesses, and bitFlyer, a longstanding exchange. Traditional financial institutions are also increasingly participating in the sector.

Nomura, one of the world’s largest financial services firms, established Laser Digital in 2022 to expand into trading, asset management, and venture investing. Meanwhile, companies like Mitsubishi UFJ Financial Group are exploring tokenized deposits and stablecoins.

Interest is extending beyond simple price speculation. Over 60% of respondents showed interest in income-generating strategies such as staking and lending, alongside derivatives and tokenized assets. This indicates that investors are beginning to view crypto as a broader financial toolkit rather than just a speculative trade.

Stablecoins are another focal point. Sixty-three percent of respondents identified potential use cases, including treasury management, cross-border payments, and foreign exchange transactions. Trust appears to be highest for stablecoins issued by major financial institutions, underscoring the importance of familiar counterparties.

Nevertheless, challenges persist. Investors cited obstacles such as the absence of established valuation frameworks, counterparty risks like fraud or asset loss, and regulatory uncertainty. High volatility continues to hinder broader adoption.

Despite these concerns, the conversation is shifting. Instead of debating whether to invest, institutions are now focusing on how to execute these strategies.

The survey was conducted in December and January, collecting responses from 518 investment professionals, including institutional investors, family offices, and public-interest organizations.