A Japanese corporate pension fund plans to begin investing in cryptocurrencies in fiscal 2026, as the country's traditional financial sector increasingly embraces crypto assets, according to local news outlet Coinpost.

The National Business Corporate Pension Fund, based in Okayama, plans to allocate roughly 1% of its total assets to crypto by investing in a passive fund managed by a hedge fund, Coinpost reported Saturday. Nikkei was the first to report the news.

The fund, whose members include about 1,200 small and midsize enterprises, manages approximately 21.3 billion yen ($131.8 million) in assets and operates a retirement savings program. The planned crypto allocation is part of a broader effort to diversify currency risk, the report said.

According to the report, the fund's portfolio was allocated 80% to yen-denominated assets, 15% to U.S. dollar-denominated assets, and 5% to other currencies in fiscal 2025. For fiscal 2026, it plans to reduce its yen weighting to 70%, allocate 10% to developed-market currencies and 5% to emerging-market currencies, gold, and crypto assets.

The Block has reached out to the pension fund for further comment.

Crypto momentum

The pension fund's plan comes amid growing regulatory momentum and increasing adoption of cryptocurrencies by Japan's traditional financial sector.

Earlier this month, Japan's lower house advanced a bill that would classify cryptocurrencies as financial instruments, and the legislation is expected to take effect next year if approved by the upper house, the House of Councillors.

Meanwhile, the country's three banking giants — MUFG Bank, Mizuho Bank, and SMBC — plan to begin live commercial transactions of a jointly issued stablecoin during fiscal 2026. SBI Shinsei Bank also reportedly plans to launch a crypto rewards program for deposit customers this fall.