Japan’s National Fund To Invest In Bitcoin, Crypto As New Digital Asset Bill Advances

Japan's National Business Corporate Pension Fund has decided to invest in Bitcoin and other cryptocurrencies as part of its fiscal 2026 asset allocation strategy, marking a significant institutional shift toward digital asset adoption in Japan. The pension fund, which manages assets on behalf of over 1,200 small and medium-sized enterprises and more than 20,000 members, will deploy approximately 1% of its capital into crypto-related investments. Rather than purchasing cryptocurrencies directly, the fund will gain exposure through a diversified range of investment vehicles managed by major hedge funds, an approach that addresses custody, operational, and counterparty risk concerns typical of institutional allocators entering the digital asset space.

The pension fund's investment decision follows a comprehensive six-year study of the cryptocurrency market and reflects evolving perceptions about institutional maturity in the sector. According to Aiyu Kiguchi, the fund's executive director responsible for investments, the expansion of institutional participation and investor base has created confidence that digital assets warrant inclusion in pension portfolios. The decision was also influenced by strategic concerns regarding continued U.S. dollar dominance in global finance. Bitcoin's historically limited correlation with the dollar index made it an attractive hedge against currency concentration risk, positioning it alongside traditional diversifiers such as gold and foreign currency allocations within the fund's rebalanced portfolio.

Coinciding with the pension fund's investment commitment, Japan's parliament has advanced comprehensive digital asset legislation that materially improves the regulatory and tax environment for institutional investors. The bill reclassifies cryptocurrencies as financial assets rather than miscellaneous income, placing them under the same regulatory framework as traditional securities. Most significantly, the legislation reduces capital gains tax on eligible crypto investments from the current progressive rate reaching 55% to a flat 20%—bringing crypto taxation into alignment with securities taxation. The bill also enables Bitcoin ETF creation pathways and introduces loss carryforward provisions, removing previous structural barriers to institutional participation. These reforms collectively signal Japan's commitment to creating a regulatory infrastructure competitive with other major financial centers and capable of attracting institutional capital into digital asset markets.