Japan’s Dominant Financial Institution, Nomura Holdings, Reveals Crypto Investment Trends
Japan’s leading investment bank Nomura Holdings, in conjunction with its crypto subsidiary Laser Digital, unveiled insights from a recent crypto survey on Monday.
The survey encompassed more than 500 investment managers in Japan, with a notable 54% expressing their intent to venture into crypto assets within the upcoming three years. Nomura highlighted that over half of the respondents are inclined to explore digital assets to varying degrees in the near future.
Among those considering crypto investments, recent catalysts such as the introduction of crypto products like exchange-traded funds (ETFs), investment trusts, staking, and lending were cited as significant drivers for the sector’s evolution.
Conversely, institutions currently hesitant about crypto investments identified barriers such as counterparty risks, market volatility, and regulatory demands.
Moreover, a quarter of the survey participants conveyed a “positive” sentiment towards crypto assets, while an impressive 62% viewed cryptocurrencies as a valuable avenue for investment diversification.
Nomura’s findings also highlighted that the preferred allocation for crypto assets among investors falls within the range of 2% to 5% of assets under management (AUM).
Beyond traditional crypto assets, respondents also expressed keenness towards investing in Web3 projects either directly or through venture capital (VC) funds.
Japan’s Progression Towards Streamlined Crypto Policies
Japan is swiftly advancing an economic reform bill with significant implications for the crypto sector. Earlier this year, the government proposed legislation permitting venture capital firms and other investment entities to hold digital assets directly.
This inclusion of digital assets within the legal framework not only legitimizes their role in institutional investments but also positions Japan as a globally recognized crypto-friendly jurisdiction.
In a report released in February, independent finance news outlet FinanceFeeds underscored Japan’s leadership in compliant crypto payments on a global scale.
Furthermore, Japan’s $1.5 trillion pension fund explored the potential integration of Bitcoin into its investment portfolio, signifying growing institutional acceptance and interest in cryptocurrencies.
Japan has also implemented rigorous regulations concerning stablecoins. Only banks, money transmission services, and trust firms are authorized to issue stablecoins, with all token reserves mandated to be held in Japanese trust and invested exclusively in domestic bank accounts.