Japan institutional investors turn more bullish on crypto

Nomura and Laser Digital have published a survey on digital asset investment trends among institutional investors in Japan, pointing to stronger sentiment towards crypto assets.

The online survey gathered responses from 518 investment professionals in Japan, including institutional investors, family offices and public-interest organisations. It examined views on digital assets and the main obstacles investors face when considering crypto exposure.

Sentiment improved from the previous edition. Thirty-one per cent of respondents said their outlook on crypto assets over the next year was positive, up from 25 per cent in the earlier survey, while 18 per cent said it was negative, down from 23 per cent.

Digital assets were also more widely seen as a tool for portfolio diversification. Sixty-five per cent of respondents viewed crypto assets as an opportunity to diversify portfolios, compared with 62 per cent in the previous survey.

Among respondents considering investing in crypto assets over the next three years, 79 per cent said they planned to invest. Of that group, 60 per cent expected to allocate between 2 per cent and less than 5 per cent of their portfolios to the asset class.

Investment case

Diversification was the main reason for investing in crypto assets. Many respondents also pointed to crypto's low correlation with other asset classes, suggesting that more investors now see it as a distinct part of portfolio construction rather than only a speculative trade.

The results also showed broader interest across the digital asset market. More than 60 per cent of respondents expressed interest in staking or mining, lending and collateralised loans, derivatives and tokenised assets.

This suggests investors are not limiting their focus to direct cryptocurrency holdings. Instead, they are considering a wider range of products that may offer yield, trading exposure or access to tokenised financial assets.

Stablecoin interest

Stablecoins also featured prominently in the survey. Sixty-three per cent of respondents identified potential use cases, including treasury management, cross-border payments, foreign exchange transactions, crypto asset investment and investment in tokenised securities.

Across yen, US dollar and euro denominations, stablecoins issued by major financial institutions attracted the highest level of trust. That comes as Japanese policymakers and market participants continue to examine how digital asset rules should evolve.

The backdrop for the survey has shifted since the previous study in mid-2024. In Japan, regulatory discussions have advanced, including deliberations by the Financial System Council's Working Group on Crypto-asset Systems toward the end of 2025.

Even so, several barriers still stand in the way of wider adoption. The main concerns were the lack of established frameworks for fundamental analysis, counterparty risks such as default, fraud and asset loss, high volatility and regulatory uncertainty.

Practical concerns

The pattern of responses suggests investor concerns may be shifting away from whether digital assets should be considered at all and towards how they can be assessed, managed and integrated into existing investment processes. For financial institutions and asset managers, that marks a different stage of market development, in which infrastructure, controls and analysis become more important.

The survey also highlighted factors respondents believe are supporting adoption. These include a broader range of investment products, improvements in risk management practices, regulatory reform and greater participation from both financial and non-financial players.

For Japan's investment market, the findings offer a snapshot of a sector that remains cautious but is becoming more engaged. Investors still see significant risks, yet the rise in positive sentiment and stronger focus on diversification suggest that crypto assets are gaining a more defined place in institutional discussions.

Laser Digital is Nomura's digital asset subsidiary, and the survey adds to a growing body of market research tracking how professional investors approach crypto assets as the regulatory and product landscape changes.

Interest was spread across several parts of the market, with 66 per cent of respondents expressing interest in staking or mining, 65 per cent in lending or collateralised loans, 63 per cent in derivatives and 65 per cent in tokenised assets.