Attitudes towards crypto investing in Japan are shifting from cautious interest to active portfolio planning, with almost 80% of Japanese institutional investors saying they plan to add cryptocurrencies over the next three years, according to a survey by Nomura and its digital asset arm Laser Digital.
This change reflects a growing view of cryptocurrencies as a diversification tool. Many respondents cited low correlation with traditional asset classes as the primary reason for adding exposure. But allocations remain restrained, with more than half targeting 2% to 5% of their portfolios.
It also reflects an improvement in sentiment, with 31% of respondents saying their outlook for cryptocurrencies is positive, compared to 25% in 2024, while negative sentiment has 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 one of the first to take steps to regulate virtual currency exchanges after the collapse of Mt. Gox in 2014. Recent efforts have focused on integrating digital assets into existing financial laws, including updates related to the Financial Instruments and Exchange Act.
That clarity has helped foster a domestic cryptocurrency ecosystem supported by major players such as SBI Holdings, the financial conglomerate that operates Japan’s largest cryptocurrency business, and established exchange BitFlyer. Traditional financial institutions are also entering the industry.
Nomura, one of the world’s largest financial services companies, founded Laser Digital in 2022 with the aim of expanding into trading, asset management and venture investing, and companies like Mitsubishi UFJ Financial Group have been exploring tokenized deposits and stablecoins.
Interest extends beyond simple price exposure. More than 60% of respondents expressed interest in income-generating strategies such as staking and lending, derivatives and tokenized assets. This suggests that investors are starting to treat cryptocurrencies less as speculative transactions and more as a broader financial toolkit.
Stablecoins are also an area that is attracting attention. 63% of respondents identified potential use cases such as financial management, cross-border payments, and foreign exchange trading. Stablecoins issued by major financial institutions seem to have the highest level of trust, highlighting the importance of a familiar trading partner.
Still, barriers remain. Investors cited challenges such as the lack of an established valuation framework, counterparty risks such as fraud and asset loss, and regulatory uncertainty. High volatility also continues to weigh on recruitment.
Still, those concerns are changing. Financial institutions are now focused on how to invest, rather than debating whether to invest.
The survey was conducted in December and January and received responses from 518 investment professionals, including institutional investors, family offices, and public interest groups.
