Japan pension fund plans $1.36M crypto allocation

• Japan's National Business Corporate Pension Fund plans to allocate about ¥213 million (US$1.36 million) to cryptocurrency exposure from fiscal 2026.
• The move forms part of a broader portfolio shift that reduces yen exposure from 80% to 70%.
• Fund officials said the allocation is intended to hedge currency risks linked to a weaker yen and a potentially less dominant US dollar.

National Business Corporate Pension Fund plans to allocate about ¥213 million (US$1.36 million), or roughly 1% of its ¥21.3 billion (US$136 million) portfolio, to cryptocurrency exposure from fiscal year 2026.

The decision follows a six-year review of alternative assets and comes as Japanese institutions assess digital assets amid evolving regulations and broader portfolio diversification efforts.

“The dollar’s nature as a base currency may be weakening,” said National Business Corporate Pension Fund executive director of operations Aiyu Kiguchi.

The fund said it will gain crypto exposure through passive multi-asset funds managed by hedge funds rather than purchasing cryptocurrencies directly, while reducing its yen allocation from 80% to 70%.

Officials stated that cryptocurrency was selected because of its relatively low correlation with the US dollar index and its potential role as a hedge against currency depreciation; following the announcement the share price reaction was unavailable because the fund is not publicly listed.

The pension fund serves more than 20,000 members across approximately 1,200 small and medium-sized enterprises and reported a funded ratio above 140% with an effective equity ratio above 30%.

The allocation comes after Japan's House of Representatives passed legislation on June 11 that could move crypto oversight under the Financial Instruments and Exchange Act, a change that market participants say could support future crypto exchange-traded fund development.