Japan's Pension Fund Plans 1% Crypto Allocation by 2026

Japan's National Business Corporate Pension Fund is planning to allocate about 1% of its portfolio to cryptocurrency by fiscal year 2026. This move marks a cautious institutional entry into digital assets by a domestic pension fund. The fund manages around $136 million in assets for over 21,000 corporate members and individual participants.

The allocation will come through passive multi-asset funds managed by major hedge funds, rather than direct token purchases. This approach reduces operational risks associated with direct custody while still allowing the fund to gain exposure to cryptocurrencies.

Japan's pension fund is framing its crypto investment as a currency-risk hedge rather than speculation. The fund currently allocates around 80% of its portfolio to yen-denominated assets, with plans to reduce this exposure to 70% in fiscal year 2026 and assign 10% to developed-market currencies.

Aiyu Kiguchi, the fund's executive director of investment, noted that the US dollar may lose part of its global reserve role over time. This view has led the fund to review its currency exposure and consider alternative assets like gold and cryptocurrencies.