Crypto News: Japan Pension Fund Plans 1% Crypto Allocation by Fiscal 2026

Key Insights:

• Crypto news: Japan’s National Business Corporate Pension Fund plans a 1% crypto allocation in fiscal 2026.
• The fund will invest through passive crypto funds instead of directly buying digital tokens.
• The move aims to diversify currency risk as Japan advances new digital asset reforms.

Japan’s National Business Corporate Pension Fund plans to add cryptocurrency exposure in fiscal 2026, according to local reports. The Okayama-based fund manages retirement assets for about 1,200 small and medium-sized companies. The crypto news plans to place about 1% of managed assets into crypto-linked products. The move adds another crypto news development to Japan’s wider push toward regulated digital asset investment.

Pension Fund Plans Crypto Exposure Through Passive Funds

The fund does not plan to buy Bitcoin or other tokens directly. Instead, it aims to use passive funds that large hedge funds manage. These products may hold several cryptocurrencies and offer a controlled route into the market.

The fund oversees about 21.3 billion yen in assets and serves more than 20,000 members. It also maintains a funded ratio above 140%, according to the reported figures. It began as the Okayama Prefecture Machinery and Metal Industry Welfare Pension Fund in 1971. It adopted its current name in 2022. The plan guarantees at least 1.2% annual interest for participating companies.

The pension fund wants to reduce currency risk in its portfolio. Its fiscal 2025 allocation stood at 80% yen, 15% dollars, and 5% other currencies. For fiscal 2026, the fund plans to lower the yen share to 70%.

The new plan also creates a 10% allocation for developed-market currencies. Another 5% will cover emerging-market currencies, gold, and cryptocurrencies. In this crypto news context, the fund views digital assets as part of a wider currency-diversification plan.

Aiyu Kiguchi, the fund’s executive director of investment, pointed to concerns over the dollar’s long-term role. He said the dollar may lose its reserve currency status. He also noted Bitcoin’s low correlation with the dollar index as one reason for considering crypto exposure.

Six Years of Research Shapes the Strategy

The fund studied digital assets for about six years before moving toward an allocation. Kiguchi said the market now has a deeper investor base. The crypto has matured enough for pension managers to review it more seriously.

The fund is also studying crypto arbitrage funds. These strategies aim to benefit from price gaps between different digital assets or trading venues. The review shows that the fund wants controlled exposure rather than a direct bet on one token.

This crypto news development stands out because Japanese pension funds have moved slowly on digital assets. Some companies have added crypto to balance sheets, but pension plans carry different duties. They must balance returns, risk controls, and long-term payments to members.

Japan Rules and Market Infrastructure Move Ahead

Japan’s policy debate may also shape the timing of the fund’s move. Lawmakers have discussed shifting crypto oversight from the Payment Services Act to the Financial Instruments and Exchange Act. The House of Representatives passed an amendment bill on June 11, and the Upper House will review it next.

Regulators are also working on rules that would allow investment trusts to hold crypto assets. That change could help open the path for spot Bitcoin ETFs in Japan. The Financial Services Agency has also targeted 2028 for related changes to investment trust rules.

The Osaka Exchange plans to launch Bitcoin futures in 2028 if spot Bitcoin ETFs gain approval. Akira Tagaya, president of the exchange, said futures would meet the needs of institutional investors. SBI Securities and Rakuten Securities have reportedly prepared to sell investment trusts with crypto exposure.

Nomura Securities, Daiwa Securities, and SMBC Nikko Securities may also review crypto products after officials finalize the rules. Proposed tax changes could also move crypto gains toward separate taxation at a 20% rate.

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