Japan's National Business Pension Fund Taps Crypto for Currency Protection

A major Japanese corporate pension fund is taking a cautious bet on cryptocurrency as part of its efforts to hedge against currency depreciation. The National Business Corporate Pension Fund plans to allocate roughly 1% of its assets, worth around $1.36 million, to crypto starting in fiscal year 2026.

The fund's officials cited the dollar's weakening reserve status and the low correlation between cryptocurrency markets and the US dollar index as reasons for their decision. They believe that adding crypto exposure will help mitigate potential losses due to currency fluctuations.

The fund has not disclosed which specific cryptocurrencies it will invest in, but plans to do so through passive multi-asset funds run by major hedge funds. The allocation is part of a broader effort to diversify the fund's portfolio and reduce its reliance on yen-denominated assets.