Japan's National Business Corporate Pension Fund plans a 1% crypto allocation through passive multi-asset hedge fund products. The move follows six years of research and aims to diversify cur
Japan’s National Business Corporate Pension Fund plans to begin cryptocurrency investments in fiscal 2026, a rare move for a domestic pension fund. According to reports, the Okayama-based fund will allocate about 1% of its ¥21.3 billion ($136 million) portfolio to crypto through passive multi-asset funds managed by major hedge funds. The fund said the move aims to diversify currency risk after years of research into alternative assets.
The National Business Corporate Pension Fund serves roughly 1,200 small and medium-sized enterprises across Japan. It manages retirement assets for more than 20,000 members, including employees from two listed companies.
As the fund prepares for the crypto allocation, it is also adjusting its broader currency strategy. According to reports, fiscal 2025 allocations consisted of 80% yen, 15% U.S. dollars, and 5% other currencies.
However, fiscal 2026 plans reduce yen exposure to 70%. The fund also intends to create a new 10% allocation to developed-market currencies. Meanwhile, the remaining 5% will include emerging-market currencies, gold, and cryptocurrencies.
Explaining the decision, Aiyu Kiguchi, executive director of investment at the fund, said the dollar could lose its reserve currency status. Consequently, the fund chose not to increase its dollar holdings. Kiguchi also noted that Bitcoin has shown little correlation with the dollar index, making it part of the diversification strategy.
The investment plan follows approximately six years of internal research. According to Kiguchi, the fund concluded that the cryptocurrency market had matured as the investor base expanded.
In addition, the fund is studying arbitrage-focused products that trade across multiple cryptocurrencies. It is also considering broader crypto exposure in the future.
The pension fund traces its origins to the Okayama Prefecture Machinery and Metal Industry Welfare Pension Fund, established in 1971. It adopted its current name in 2022 and operates from the Okayama Chamber of Commerce and Industry building.
The pension fund’s decision comes as Japan’s financial sector prepares for potential cryptocurrency-related reforms. Notably, Osaka Exchange President Akira Tagaya said the exchange could launch Bitcoin futures in 2028 if spot Bitcoin ETFs receive approval.
At the same time, Japan’s Financial Services Agency is working toward allowing investment trusts to hold cryptocurrencies by 2028. Separately, lawmakers submitted legislation in April 2026 that would classify cryptocurrencies as financial instruments.
Meanwhile, major brokerages continue preparing for the market. According to Nikkei, SBI Securities and Rakuten Securities plan to offer cryptocurrency-linked investment trusts. Nomura Securities, Daiwa Securities, and SMBC Nikko Securities have also indicated they may distribute similar products once regulations become clear.
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