Japanese corporate pension to invest 1% of assets in crypto

The Nationwide Business Corporate Pension Fund, which serves about 1,200 small and medium-sized companies based in Okayama, plans to allocate roughly 1% of its ¥21.3 billion portfolio to cryptocurrency in the fiscal year starting 2026. The fund intends to invest through a passive vehicle managed by a large hedge fund that holds multiple digital assets rather than acquiring coins directly.

The pension fund manages about ¥21.3 billion (approximately $130 million) and currently holds about 80% of assets in yen, 15% in U.S. dollars and 5% in other currencies. The proposed crypto allocation is described by the fund’s managers as part of an effort to diversify exposure.

On June 11, Japan’s lower house of parliament approved legislation to bring crypto assets under the Financial Instruments and Exchange Act. The bill will move to the upper house for further consideration. If enacted, the change would put digital assets under rules more closely aligned with those for conventional financial products and could create a path for crypto exchange-traded funds and a 20% flat tax on digital-asset gains.

Japanese banks and financial firms are expanding retail and institutional access to digital assets. One bank has been testing a deposit-linked rewards program that offers vouchers redeemable for Bitcoin, Ether or XRP, with a planned permanent launch this autumn. Separately, a publicly listed company that holds Bitcoin agreed to acquire a securities firm for ¥2.1 billion to support development and distribution of Bitcoin-linked yield products through a newly formed securities arm.

The pension fund’s planned allocation is scheduled for fiscal 2026 and will be made via a passive fund rather than direct cryptocurrency holdings.