Japanese pension fund reserves 1% of its assets for cryptocurrencies.

• Japanese fund allocates 1% to cryptocurrencies.
• Institutional adoption of cryptocurrencies is growing in Japan.
• Diversification includes gold, currencies, and cryptocurrencies.

The adoption of cryptocurrencies by traditional institutions has gained another chapter in Japan. One of the country's corporate pension funds plans to begin investing in the sector during the 2026 fiscal year, following a growing trend among Japanese financial companies.

According to information released by the local press, the National Corporate Pension Fund, based in the city of Okayama, plans to allocate approximately 1% of its total assets to cryptocurrencies through a passive fund managed by a specialized asset manager.

The entity manages approximately 21,3 billion yen, equivalent to about US$131,8 million. The fund brings together around 1.200 small and medium-sized participating enterprises and offers a supplementary retirement program for its members.

The inclusion of cryptocurrencies is part of a broader strategy aimed at diversifying the portfolio and reducing dependence on specific currencies. Currently, the majority of assets remain concentrated in yen-denominated assets.

In fiscal year 2025, the investment allocation was comprised of 80% in assets linked to the Japanese yen, 15% in assets linked to the US dollar, and 5% in other currencies. For 2026, the proposal foresees a reduction in exposure to the yen to 70%.

At the same time, the fund intends to expand its presence in international assets. The plan includes an allocation of 10% to currencies of developed markets and another 5% distributed among currencies of emerging markets, gold, and cryptocurrencies.

This initiative comes at a time of greater integration of cryptocurrencies into the Japanese financial system. The country has been advancing regulatory measures that seek to establish clearer rules for the sector and expand the participation of traditional institutions in this market.

Recently, the Japanese Lower House approved a bill that classifies cryptocurrencies as financial instruments. If the proposal receives final approval from the House of Councillors, the new regulatory framework should come into effect next year.

In addition to regulatory changes, large financial institutions are also expanding their operations. MUFG Bank, Mizuho Bank, and SMBC are working to begin trading with a jointly developed stablecoin during fiscal year 2026. Meanwhile, SBI Shinsei Bank is preparing a cryptocurrency-based rewards program for customers who hold deposits with the institution.

These movements indicate a growing presence of cryptocurrencies in investment strategies and financial services offered by some of Japan's leading organizations.