Japanese pension fund invests in crypto for the first time. The Okayama‑based National Business Corporate Pension Fund plans to allocate approximately 1% of its total assets to cryptocurrencies in fiscal year 2026.
According to the report, this investment will be made through a passive mutual fund managed by a hedge fund.
Why a Japanese pension fund invests in crypto now
The pension fund manages assets worth 21.3 billion yen (approximately $131.8 million). It has about 1,200 small and medium‑sized enterprises as members. While the fund’s primary purpose is to manage employees’ retirement savings, managers have recently been turning to new investment vehicles. Specifically, they want to mitigate currency risks and increase portfolio diversification.
In fiscal year 2025, 80% of the fund’s assets were invested in Japanese yen, 15% in US dollar‑denominated assets, and 5% in other currencies. Under the new strategy for fiscal year 2026, the share of yen‑denominated investments will be reduced to 70%.
Consequently, the goal is to invest 10% in developed country currencies and 5% in emerging market currencies. Additionally, gold and crypto assets will be included in the portfolio.
Regulatory support grows in Japan
This development comes at a time of increased regulatory support for the cryptocurrency sector in Japan. For example, the country’s House of Representatives recently introduced a bill that would classify cryptocurrencies as financial instruments. If approved by the upper house, the bill is expected to come into effect next year.
Therefore, experts say that pension funds turning to cryptocurrencies is a significant indicator of the increasing acceptance of digital assets in the institutional investment world. Such steps are considered to contribute to the long‑term growth of the crypto market.