Japan: SBI and Rakuten Launch In-House Crypto Investment Funds Following Legislative Revision

Japan is taking another step in integrating cryptocurrencies into its traditional financial system. At the end of April 2026, the Japanese Parliament approved a major legislative revision reclassifying cryptocurrencies as financial instruments , thereby subjecting them to the same rules as stocks or bonds. This decision, which is taking effect gradually, paves the way for greater adoption of digital assets by local players, notably the financial giants SBI Holdings and Rakuten. These two groups are now developing in-house crypto investment funds , a first in the country, with the aim of attracting institutional capital and strengthening Japan's position as a regional hub for digital assets. The facts The revision of the Financial Instruments and Exchange Act in Japan marks a turning point in cryptocurrency regulation. Now considered financial assets, they benefit from a clear legal framework, reducing uncertainty for investors. SBI Holdings and Rakuten, already well established in traditional financial services, have announced the development of crypto investment funds managed in-house. This initiative allows them to offer innovative financial products without relying on third parties, an unprecedented approach for major players in the Japanese market. No specific date has been announced for the launch of the first funds, but observers expect an announcement in the coming months. The funds could target assets such as Bitcoin (BTC), Ethereum (ETH), as well as stablecoins like USDT or USDC. However, the strict regulatory framework will likely limit access to certain high-risk assets, such as memecoins or unaudited DeFi protocols. Why it matters This initiative is part of a broader strategy aimed at positioning Japan as a regional leader in the cryptocurrency sector. By attracting institutional capital, the country could offset capital outflows observed in other Asian jurisdictions, such as China or South Korea. Japanese crypto funds could benefit from better liquidity and greater adoption by traditional investors, similar to what was observed after the approval of Bitcoin ETFs in the United States. From a technical standpoint, this legislative revision could strengthen the confidence of institutional investors, while limiting innovation in certain market segments. DeFi protocols operating on blockchains such as Ethereum or Solana could see their liquidity increase, but the riskiest assets could be excluded from the funds. This approach contrasts with that of other crypto hubs in Asia, such as Singapore or Dubai, where rules are generally more permissive. From a macroeconomic perspective, this initiative could support the Japanese yen (JPY) and assets linked to the Japanese market, notably Bitcoin and Ethereum, if the funds attract institutional capital. It could also serve as a model for other Asian countries seeking to attract investment in digital assets, particularly in a context of geopolitical tensions in East Asia. What to Watch The official announcement of the launch of the first crypto funds by SBI Holdings and Rakuten, expected within the next 3 to 6 months. The reactions of Japanese regulators, notably the Financial Services Agency (FSA), regarding a possible expansion of the assets eligible for crypto funds. The impact on capital flows into Japan, compared with other Asian hubs such as Singapore or Dubai. The adoption of crypto funds by institutional investors and their performance against regional competition. Any additional restrictions imposed by the strict regulatory framework, which could limit innovation or access to certain assets. This legislative revision represents a significant step forward for Japan, but its success will depend on the ability of local players to attract institutional capital while maintaining a balance between innovation and regulation.