Japanese Pension Fund Plans to Invest in Crypto

Japanese pension fund National Business Corporate Pension Fund, which serves around 1,200 small and medium-sized enterprises, plans to allocate part of its portfolio to cryptocurrencies beginning in fiscal year 2026.

The fund manages assets worth approximately ¥21.3 billion (around $136 million) and intends to dedicate about 1% of its portfolio to digital assets.

This marks one of the few instances in which a Japanese pension institution has decided to gain exposure to the cryptocurrency market. The investment will be made through a passive fund managed by a major hedge fund. Neither the name of the fund nor the cryptocurrencies included in the portfolio have been disclosed so far.

The fund emphasizes that cryptocurrencies are not being viewed as a vehicle for quick profits. Instead, the primary objective is to diversify currency-related risk. During fiscal year 2025, roughly 80% of assets were denominated in Japanese yen, 15% in U.S. dollars, and the remaining 5% in other currencies.

Starting in 2026, the fund plans to reduce its exposure to the yen from 80% to 70%. At the same time, it aims to increase allocations to developed-market currencies to 10%. Another 5% of the portfolio will be allocated to emerging-market currencies, gold, and cryptocurrencies.

According to Chief Investment Officer Aiyu Kiguchi, the decision is partly driven by concerns about the long-term role of the U.S. dollar. He believes the dollar could eventually lose its status as the world’s primary reserve currency, prompting the fund to avoid increasing its dollar exposure.

The institution has spent nearly six years preparing for its entry into the cryptocurrency market. Kiguchi noted that the sector has matured significantly during that period, with a substantial increase in both market participants and overall adoption. The fund is also exploring arbitrage strategies involving multiple digital assets.

Despite the move, the scale of the investment will remain modest. This approach allows the fund to gain exposure to a new asset class without materially affecting the overall portfolio. Such caution is particularly important for pension funds, which must carefully manage risk. According to CoinPost, the fund’s liability coverage ratio exceeds 140%, while its effective equity allocation stands at more than 30%.

The decision comes as Japan continues to reshape its cryptocurrency regulations. On June 11, the lower house of parliament approved a bill that would move digital assets from the Payment Services Act to the Financial Instruments and Exchange Act.

The proposed changes could eventually pave the way for regulated cryptocurrency exchange-traded funds (ETFs). However, further legislative work is still required before the reforms can take effect.

At the same time, Osaka Exchange, part of Japan Exchange Group, is considering launching Bitcoin futures contracts as early as 2028. Such a move would depend on the prior approval of spot Bitcoin ETFs in the country.

Taken together, these developments indicate that Japan is seeking to expand its cryptocurrency sector within a regulated financial framework. The National Business Corporate Pension Fund’s decision represents a cautious but meaningful step in that direction and signals that some institutional investors are beginning to view cryptocurrencies as a component of long-term portfolio management and currency risk diversification strategies.