Japan's National Business Corporate Pension Fund is set to begin cryptocurrency investments in fiscal 2026, a rare step for a domestic pension fund. The Okayama-based fund manages JPY 21.3 billion ($136 million) in assets and will allocate roughly 1% to crypto through passive multi-asset funds run by major hedge funds.
Six Years of Research Behind the Move
Executive director Aiyu Kiguchi said the fund concluded that the cryptocurrency market had matured as its investor base expanded. Bitcoin shows little correlation with the dollar index, Kiguchi noted, making it a viable diversifier. The fund serves about 1,200 small and medium-sized enterprises and covers over 20,000 members.
Currency Strategy Shifts Away from Dollar
Fiscal 2025 allocations comprised 80% yen, 15% U.S. dollars, and 5% others. In fiscal 2026, yen exposure drops to 70%, with a new 10% slice for developed-market currencies. The remaining 5% includes emerging-market currencies, gold, and cryptocurrencies. Kiguchi cited risks of the dollar losing reserve currency status as a reason not to increase dollar holdings.
Regulatory Tailwinds Gaining Speed
Japan's financial sector is preparing for crypto-friendly reforms. Osaka Exchange President Akira Tagaya said Bitcoin futures could launch in 2028 if spot Bitcoin ETFs get approved. The Financial Services Agency is working to allow trusts to hold crypto by 2028. In April, lawmakers submitted legislation to classify cryptocurrencies as financial instruments.
Brokerages Line Up Products
SBI Securities and Rakuten Securities plan to offer crypto-linked investment trusts, per Nikkei. Nomura, Daiwa, and SMBC Nikko Securities also indicated they may distribute similar products once regulations are clear. The pension fund is additionally studying arbitrage-focused products trading across multiple cryptocurrencies and may expand crypto exposure further.
Originally founded in 1971 as the Okayama Prefecture Machinery and Metal Industry Welfare Pension Fund, the entity renamed itself in 2022 and operates from the Okayama Chamber of Commerce building.