A Japanese pension fund plans to allocate 1% of its portfolio to cryptocurrency in fiscal year 2026. The allocation is part of a broader effort to diversify currency risk and reduce exposure to the yen.
The fund's current asset mix consists of 80% yen, 15% dollars, and 5% other currencies. For fiscal 2026, it plans to cut yen exposure to 70% and add a 10% allocation to developed-market currencies.
In addition to the new allocations, the fund will also include emerging-market currencies, gold, and crypto in its portfolio, making up an additional 5%. Aiyu Kiguchi, the fund's investment executive director, stated that the dollar 'may lose its status as a reserve currency,' which is why it did not increase dollar holdings.