On Monday, Nomura Holdings, Japan’s most significant investment bank, and its cryptocurrency subsidiary, laser Digital, disclosed the results of a survey into the cryptocurrency market.
The company surveyed over 500 investment managers in Japan, and 54% of them expressed their intention to invest in crypto assets within the next three years.
Nomura Holdings observed that more than half of the respondents were inclined to invest in digital assets to a certain extent in the future.
Some recent factors that have driven the development of cryptos were emphasized by respondents contemplating investing in them. These include introducing crypto products such as exchange-traded funds (ETFs), investment trusts, stakes, and lending.
Institutions not considering crypto investments have identified several obstacles, such as counterparty risks, regulatory requirements, and high volatility.
Furthermore, 25% of survey respondents have a “positive” perception of the asset class. Additionally, 62% of respondents identified cryptos as an investment diversification opportunity.
“It was suggested that the optimal allocation for crypto assets is 2~5% of assets under management (AUM).”
Respondents also expressed interest in investing in Web3 projects directly or through venture capital (VC) funds.
Japan Advances Towards a Simplified Crypto Policy
Japan is rapidly developing an economic reform law with significant implications for the crypto industry. The government released a legislative proposal early in the year that permits venture capital firms and other investment funds to possess digital assets directly.
Incorporating digital assets in the legal framework legitimizes their use in institutional investments and establishes the nation as a crypto-friendly jurisdiction on a global scale.
In February, FinanceFeeds, an independent finance news outlet, published a report that underscored Japan’s status as a global leader in compliant crypto payments.
Additionally, in March, Japan’s $1.5 trillion pension fund was conducting an active investigation into the potential inclusion of Bitcoin in its investment portfolio.
Stablecoins have also been vigorously regulated in Japan. The nation observed that stablecoins may be issued exclusively by banks, money transmission services, and trust firms.
Furthermore, all reserves that support the token’s value must be maintained in Japanese trust and invested exclusively in domestic bank accounts.
