Almost 80% of Japan’s institutional investors want to include crypto within the next three years, indicating a change from cautious curiosity to active portfolio planning, according to a poll conducted by Nomura and its digital asset unit, Laser Digital.
Changes like this show how crypto is being seen as a tool for diversification more and more. One of the main reasons given by many respondents for increasing exposure was the poor correlation with established asset classes. However, allocations are still modest, with over 50% aiming to allocate 2% to 5% of their portfolios.
Additionally, it shows that people’s mood is becoming better: 31% of respondents are optimistic about crypto, up from 25% in 2024, while 18% are pessimistic.
Strong Regulatory Backing
This research is timely, since Japan is now working to improve its digital asset regulatory environment, which is among the most advanced in the world. After the 2014 Mt. Gox crash, the nation was quick to regulate cryptocurrency exchanges. There have been recent initiatives to amend the Financial Instruments and Exchange Act and others to include digital assets into preexisting financial legislation.
Because of this transparency, a domestic crypto ecosystem has grown around prominent players like bitFlyer, a long-standing exchange, and SBI Holdings, a financial conglomerate that runs one of the biggest crypto businesses in Japan. Also, more conventional banks and credit unions have joined the fray.
More of a Financial Toolset
Firms like Mitsubishi UFJ Financial Group have looked into tokenized deposits and stablecoins, while Nomura, a global leader in financial services, established Laser Digital in 2022 to broaden its offerings to include trading, asset management, and venture capital.
Extending beyond basic price exposure, interest is growing. Strategies that generate revenue, such staking and lending, derivatives, and tokenized assets, were mentioned by over 60% of respondents. That points to the fact that crypto is starting to be seen by investors as more of a financial toolset than a speculative transaction.
