Institutional investors in Japan are shifting from cautious interest to active portfolio planning around digital assets. A survey by Nomura and its digital asset arm Laser Digital found that nearly 80% of Japanese institutional investors intend to buy cryptocurrency within the next three years.
Diversification as core driver; allocations still reserved
The primary motivation cited is diversification: most respondents pointed to crypto's low correlation with traditional asset classes. While the appetite is strong, actual allocation remains restrained — more than half of the institutions plan to keep crypto exposure between 2% and 5% of their portfolios.
Sentiment is improving. 31% of respondents described their outlook on crypto as positive, up from 25% in 2024, while negative sentiment dropped to 18%.
Established regulation fosters a domestic crypto ecosystem
Japan was an early mover in regulating crypto exchanges after the Mt. Gox collapse in 2014. Recent regulatory efforts have focused on integrating digital assets into existing financial laws, including updates to the Financial Instruments and Exchange Act.
This clarity has helped build a domestic ecosystem anchored by major players like SBI Holdings and long-standing exchange bitFlyer. Traditional financial institutions are also entering: Nomura launched Laser Digital in 2022 for trading, asset management, and venture investing; Mitsubishi UFJ Financial Group has explored tokenized deposits and stablecoins.
From price exposure to income-generating strategies
Interest is expanding beyond simple price exposure. Over 60% of respondents expressed interest in income-generating strategies such as staking, lending, derivatives, and tokenized assets. This suggests investors are starting to treat crypto less as a speculative trade and more as a broader financial toolkit.
Stablecoins are another area of focus. 63% of respondents identified use cases including treasury management, cross-border payments, and foreign exchange transactions. Trust is highest for stablecoins issued by major financial institutions, highlighting the importance of familiar counterparties.
Remaining barriers: valuation models and counterparty risk
Still, obstacles persist. Investors pointed to the lack of established valuation frameworks, counterparty risks such as fraud or asset loss, and regulatory uncertainty. High volatility also continues to weigh on adoption.