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

A survey by Nomura and Laser Digital indicates that approximately 80% of Japanese institutional investors intend to include digital assets in their portfolios within the next three years, with most planning allocations between 2% and 5%. This shift reflects a growing perception of crypto as a diversification tool due to its low correlation with traditional assets. Investor sentiment has improved, with positive outlooks increasing and negative sentiment decreasing. Japan's refined regulatory framework for digital assets, established after the Mt. Gox collapse and integrated into financial laws, has fostered a domestic crypto ecosystem supported by major companies like SBI Holdings and bitFlyer. Traditional financial institutions, including Nomura and Mitsubishi UFJ Financial Group, are also expanding their involvement in the crypto space. Beyond price exposure, investors are interested in income-generating strategies like staking and lending, as well as derivatives and tokenized assets, suggesting a view of crypto as a broader financial toolkit. Stablecoins are also a focus, with potential use cases in treasury management, cross-border payments, and foreign exchange. Despite remaining challenges such as valuation frameworks, counterparty risks, and volatility, the focus for institutions is moving from 'whether to invest' to 'how to invest'. The survey involved 518 investment professionals.

(Source：CoinDesk)