Japanese institutional investors are warming to crypto as a portfolio diversification instrument, according to a survey of 518 investment professionals conducted by Nomura and its digital asset subsidiary Laser Digital.
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The numbers point in one direction. Sixty-five percent of respondents now view crypto as a diversification opportunity, up from 62% in 2024. Seventy-nine percent of those considering crypto plan to invest within the next three years. Institutions reporting a positive outlook on digital assets rose to 31%, while those with a negative view fell to 18%.
The shift is partly regulatory. Japan has spent several years building out a clearer legal framework for digital assets, and the survey suggests that work is translating into institutional confidence.
Demand Is Growing But Allocation Remains Limited
That confidence, however, comes with limits. Most Japanese institutions planning to invest are targeting allocations of 2–5% of their portfolios — below the ranges seen in comparable surveys of U.S. and European institutions, where targets of 5–15% are more common.
The gap reflects both cultural conservatism and the fact that Japan's largest institutional investors operate under strict fiduciary constraints that make aggressive first-mover positioning difficult to justify.
Demand for more complex products is a different story. More than 60% of respondents expressed interest in staking, lending, crypto derivatives, and tokenised assets. Sixty-three percent identified specific use cases for stablecoins, with a clear preference for those issued by large, regulated financial institutions.
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The pattern of demand reflects the requirements of institutions looking to run digital assets through the same workflows they use for traditional fixed income and alternatives.
For brokers, custodians, and asset managers with a presence in Japan, the opportunity is real but narrow. The institutions entering this market know what they want: regulated counterparties, institutional-grade custody, yield-generating structures, and stablecoins that carry recognizable credit backing.
Firms that can deliver on those specifics are well-positioned. Those offering generic crypto access are not.
