Key highlights:
- Japan’s pension fund has announced up to 1% crypto allocation.
- The fund will not buy crypto, but get access to crypto via a passive multi-token fund.
- The move comes amid Japan’s broader shift in approach to cryptocurrencies.
A Japanese pension fund is reportedly gearing up for a significant shift in its investment strategy. The fund plans for a major crypto allocation, investing up to 1% of its assets in digital assets from fiscal 2026.
Significantly, the move comes as part of the Okayama-based $136 million Nationwide Business Corporate Pension Fund’s initiative to go beyond traditional investment methods. Pension funds have been historically dominated by yen-based holdings. Now, with this crypto allocation, the fund is rewriting history, while marking a major milestone for institutional adoption of crypto in Japan.
Japan’s pension fund confirms 1% crypto allocation
Japan’s Nationwide Business Corporate Pension Fund has announced plans for 1% crypto allocation as part of its new investment strategy. The fund views Bitcoin as a hedge against long-term dollar weakness. On top of it, the fund sees this crypto allocation as a way to diversify its portfolio, moving away from the traditional yen-focused investment strategy.
Japan Corporate Pension Fund to Allocate 1% of Assets to Crypto in FY2026
Japan’s National Commercial Enterprise Pension Fund plans to begin investing in cryptocurrencies in fiscal 2026, with crypto expected to account for about 1% of its total assets. The fund covers around… pic.twitter.com/GwCjXLsy8x
— Wu Blockchain (@WuBlockchain) June 21, 2026
Aiyu Kiguchi, the fund’s executive director of investment, said the decision is linked to currency strategy rather than the Bitcoin price’s outlook. Kiguchi remains less enthusiastic about the dollar as he believes that the fiat’s value could decline significantly soon. He stated that the dollar dominance could soon collapse, which prompted the fund to decrease its exposure to the currency.
In addition, the Japanese yen has also fallen sharply. This has indeed put pressure on the pension fund’s portfolio, which is now heavily invested in yen. Currently, 80% of its holdings are in yen. Under the latest plans, the fund will reduce it to 70%, adding cryptocurrencies to the asset mix.
Thus, the pension fund sees Bitcoin and crypto allocation as a tool to better diversify its holdings. As digital assets remain relatively uncorrelated with the US dollar index, according to the fund, crypto allocation could serve as a hedge.
However, the pension fund does not plan to buy cryptocurrencies directly. Instead, it intends to get access to crypto via a passive multi-token fund managed by a major hedge fund. This allows it to enter the crypto market in a more regulated and professional way.
Crypto enters Japan’s TradFi sector
Notably, Nationwide Business Corporate Pension Fund’s crypto allocation comes amid the Japanese TradFi sector’s progressive approach. The country’s lawmakers have taken the initiative to include cryptocurrencies in the traditional financial system.
Recently, Japan’s House of Representatives passed a major crypto bill. The bill aims to bring digital assets under the Financial Instruments and Exchange Act (FIEA), under the same rules as traditional financial products. This marks a major change in the country’s crypto regulatory framework.
As reported by CoinCodex, the new bill could also pave the way to the potential launch of crypto ETFs in the country. The proposal also aims to reduce the crypto tax from the current 55% to just 20%.
Interestingly, these developments indicate that Japan is taking a progressive stance towards crypto. By incorporating crypto into the TradFi space, the country is laying the foundation for broader crypto adoption.
Global pension funds embrace crypto
Japan is not the only country adopting crypto allocation in its pension funds. Other countries like the US, UK, and Australia have also followed similar paths. For instance, the US has already been successful in its crypto investment strategy in pension funds.
The UK is one of the pioneers in pension fund crypto allocation. In 2024, a British fund decided to allocate 3% of its portfolio to crypto. Another example is Colombia, where major pension funds rolled out the ability to invest in BTC through Bitcoin ETFs. The product was launched by the country’s biggest pension fund, Porvenir, providing indirect exposure to BTC.
Source:: Japanese Corporate Pension Fund Plans 1% Crypto Allocation amid Broader Portfolio Shift