Japanese pension fund to allocate 1% crypto FY2026

A Japanese corporate pension fund is planning to allocate a small portion of its assets to cryptocurrencies in the coming fiscal year, a move framed as a hedge against currency risk rather than a speculative bet. The National Business Corporate Pension Fund, based in Okayama City and serving approximately 1,200 small and medium-sized enterprises, intends to invest roughly 1% of its portfolio in digital assets starting in fiscal year 2026.

The fund manages about 21.3 billion yen, or roughly $136 million, making the planned allocation worth approximately 213 million yen, or $1.36 million. Officials emphasized that the fund will not purchase cryptocurrencies directly. Instead, exposure will be gained through a passive multi-asset fund managed by a major hedge fund that holds a basket of various digital tokens.

The primary rationale for the allocation is diversification against currency depreciation. Fund officials stated they are reducing their yen exposure from 80% to 70% for fiscal 2026. The freed-up allocation will be directed toward developed market currencies, with a remaining portion split among emerging market currencies, gold, and crypto. Aiyu Kiguchi, the fund's executive...