Japanese corporate pension funds are set to include digital assets in their investment portfolios. As the Japanese government accelerates regulatory frameworks recognizing cryptocurrencies as financial products, institutional investors are poised to enter the market in earnest.
The Block reported on June 21 that Japan’s National Corporate Pension Fund plans to allocate roughly 1% of its total assets to digital assets starting in fiscal year 2026. The investment strategy will involve distributing funds to a passive fund comprising various cryptocurrencies.
The National Corporate Pension Fund, which serves about 1,200 small and medium-sized enterprises, manages assets totaling 21.3 billion JPY (approximately 131.74 million USD). This is equivalent to about 202.6 billion KRW (131.52 million USD).
This move into digital assets is seen as a portfolio diversification strategy to mitigate currency risk. In fiscal year 2025, the fund’s asset allocation stood at 80% JPY, 15% USD, and 5% other currencies.
However, beginning in fiscal year 2026, the fund intends to reduce its JPY exposure to 70% and allocate about 5% to emerging market currencies and digital assets.
Japan is indeed ramping up its regulatory framework for digital assets. Earlier this month, the Japanese parliament passed legislation classifying cryptocurrencies as financial products. This bill is expected to take effect next year, pending approval from the upper house.
In a related development, Japan’s top three banks – MUFG Bank, Mizuho Bank, and SMBC – are planning to initiate commercial transactions using a jointly issued stablecoin.
Sources indicate that SBI Shinsei Bank, a subsidiary of the Japanese financial conglomerate SBI Holdings, is set to launch a cryptocurrency reward program for depositors in the second half of this year.