Almost 80% of Japanese institutional investors are eyeing crypto for their portfolios by 2029

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Attitudes to crypto investment in Japan are shifting from cautious interest to active portfolio planning, according to a survey by Nomura and its digital asset arm, Laser Digital, with almost 80% of the country’s institutional investors saying they plan to add crypto in the next three years.

The shift reflects a growing view of crypto as a diversification tool. Many of the respondents cited low correlation with traditional asset classes as a key reason for adding exposure. Allocations, though, remain restrained, with more than half targeting between 2% and 5% of their portfolios.

It also reflects improving sentiment: 31% percent of respondents described their outlook on crypto as positive, compared with 25% in 2024, while negative sentiment declined to 18%.

The findings come as Japan refines one of the more established regulatory frameworks for digital assets among major economies. The country was an early mover in regulating crypto exchanges following the Mt. Gox collapse in 2014. Recent efforts have focused on integrating digital assets into existing financial laws, including updates tied to the Financial Instruments and Exchange Act.

That clarity has helped foster a domestic crypto ecosystem anchored by major companies such as SBI Holdings, the financial conglomerate that operates one of Japan’s largest crypto businesses, and bitFlyer, a long-standing exchange. Traditional financial institutions have also entered the industry.

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

Interest is expanding beyond simple price exposure. More than 60% of respondents expressed interest in income-generating strategies such as staking and lending, as well as derivatives and tokenized assets. That suggests investors are beginning to treat crypto less as a speculative trade and more as a broader financial toolkit.

Stablecoins are another area of focus. 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, highlighting the importance of familiar counterparties.

Still, barriers remain. Investors pointed to challenges including 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.

Even so, those concerns are shifting. Rather than debating whether to invest, institutions are now focused on how to do it.

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

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