Japanese Institutions Turn to Crypto But Keep Allocations Small

A Nomura/Laser Digital survey of 518 Japanese investment professionals shows growing institutional acceptance of crypto as a portfolio diversifier, driven by clearer regulation. Sixty-five percent now view crypto as diversification (up from 62% in 2024), 79% plan to invest within three years, and positive outlooks rose to 31% while negatives fell to 18%. Despite the improving sentiment, most institutions plan modest allocations of 2–5%, below typical U.S./European targets. Demand is concentrated in staking, lending, crypto derivatives, tokenised assets and regulated stablecoins, with institutions preferring products from regulated counterparties and institutional-grade custody. Market impact: incremental, targeted institutional flows into yield products, derivatives and regulated stablecoins rather than large spot allocations — creating a narrow but valuable opportunity for custodians, brokers and asset managers who can meet strict institutional requirements.