Japanese Pension Fund Prepares to Invest in Cryptocurrencies! Here Are the Details

As interest in crypto assets increases among traditional financial institutions in Japan, one of the country’s corporate pension funds is preparing to implement a remarkable investment plan. The Okayama-based National Business Corporate Pension Fund plans to allocate a portion of its portfolio to cryptocurrency assets in fiscal year 2026.

According to the report, the fund aims to allocate approximately 1% of its total assets to cryptocurrencies. This investment is expected to be made through a passive mutual fund managed by a hedge fund.

The pension fund, which has approximately 1,200 small and medium-sized enterprises as members, manages assets worth 21.3 billion yen (approximately $131.8 million). While the fund’s primary purpose is to manage employees’ retirement savings, managers have recently been turning to new investment vehicles 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 prepared for fiscal year 2026, the share of yen-denominated investments is planned to be reduced to 70%.

The goal is to invest 10% in developed country currencies and 5% in emerging market currencies, while gold and crypto assets will also be included in the portfolio.

This development comes at a time of increased regulatory support for the cryptocurrency sector in Japan. Recently, the country’s House of Representatives 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.

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.

*This is not investment advice.