$130M AUM Japanese Pension Fund To Allocate 1% Of Assets In Crypto

• The National Business Corporate Pension Fund in Japan will reduce its yen-based asset exposure, paving the way for crypto allocation and diversifying against US-based Treasuries.

Japan continues to supercharge its financial industry by adopting cryptocurrencies. Recently, the Okayama City-based National Business Corporate Pension Fund revealed that it’s diversifying its assets into digital assets.

National Business Corporate Pension Fund’s Crypto Overhaul

According to Nikkei, the National Business Corporate Pension Fund will incorporate crypto into 1% of its assets, as it does not correlate with the US dollar. The strategy aims to diversify currency risk in its investment portfolio.

The corporate pension plan is also known as the National Business Pension Fund or Zenkoku Shokugyo Dainenkin Kikin in Japanese. It’s a large, established pension fund providing retirement security for employees across 1,200 small and midsize enterprises.

ADVERTISEMENTThe company currently maintains approximately ¥21.3 billion (around $130 million based on prevailing exchange rates) in assets under management (AUM). As of its 2025 fiscal-year report, it allocated a majority, or roughly 80%, to yen-denominated assets, 15% to US Treasury assets, and 5% in other currencies.

It plans to overhaul its portfolio, citing concerns over the significant decline in the US dollar’s value over the last six years, based on six years of internal research and a thorough review. The implementation of the strategy in the 2026 fiscal year will reduce its yen exposure to 70%. Then, it will direct 10% to developed-market currencies and 5% to emerging-market currencies, including gold and crypto.

Bleak Outlook on the US Dollar

Aiyu Kiguchi, executive director of investment at the fund, stated that the pension fund’s decision stemmed from its projection that the US dollar will lose its reserve currency status over the next couple of years. Additionally, he indicated that the fund will no longer increase its allocation in the currency as it transitions to Bitcoin (BTC) and crypto adoption.

ADVERTISEMENTDespite the National Business Corporate Pension Fund’s move to gradually diversify its assets away from the US dollar, trends show that the currency is edging closer to matching its all-time high value against the yen.

On Monday morning (UTC), the USD is already nearing the ¥162 range. It’s just a few sens (yen’s equivalent to a cent) away from matching the all-time high exchange of ¥161.96 per USD in July 2024.

USD vs JPY (Source: TradingView)Nonetheless, the USA’s rising national debt of $39.28 trillion and three-year high inflation at 4.2% (year-over-year) threaten the stability of the fund’s US dollar-denominated reserves, forcing it to rethink its playbook.

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