BlockBeats News, June 22, The National Commercial Business Pension Fund of Japan, joined by about 1,200 small and medium-sized enterprises (based in Okayama City), plans to start investing in cryptocurrency in the fiscal year 2026. While there have been cases of some Japanese companies investing in crypto assets, it is still relatively rare for a domestic pension fund to directly participate in crypto investments.

The fund plans to allocate approximately 1% of its overall assets to cryptocurrency, and will indirectly allocate through investments in passive funds managed by large hedge funds, including various crypto assets.

In terms of asset allocation, its structure for the fiscal year 2025 is as follows: 80% in Japanese Yen, 15% in US Dollar, and 5% in other currencies. However, in the fiscal year 2026, the plan is to adjust to: decrease Japanese Yen to 70%, add a 10% allocation in developed country currencies, and allocate the remaining 5% to emerging market currencies, gold, and crypto assets.

The main purpose of this adjustment is to diversify exchange rate risk. Ai Tomo Kiguchi, Executive Director of the fund, stated that the position of the US Dollar as the global reserve currency may be weakening, hence the decision to reduce the holding of US Dollars. At the same time, he pointed out that the correlation between Bitcoin and the US Dollar Index is close to zero, making it a hedge against currency depreciation and an asset allocation tool to enhance portfolio inflation resistance.