Japan's two largest online brokerages, SBI Securities and Rakuten Securities, plan to launch cryptocurrency investment trusts following recent regulatory clarity from Japan's Financial Services Agency. The move signals institutional appetite for crypto products in Asia's second-largest economy.
SBI Securities and Rakuten Securities hold dominant positions in Japan's retail brokerage market, with combined assets under management exceeding $2 trillion. Both firms see crypto trusts as a natural extension of their wealth management offerings. Investment trusts allow retail investors to gain crypto exposure through regulated, professionally-managed vehicles rather than direct token ownership.
Japan's FSA updated its crypto regulatory framework in 2023, establishing clearer guidelines for digital asset service providers. The framework distinguishes between exchanges, lending services, and investment products, removing much ambiguity that previously deterred mainstream financial institutions from entering the space.
An additional 11 companies told surveyors they would launch crypto funds once regulatory pathways solidified further. This indicates broader institutional interest beyond the two leading brokers. Japanese banks and asset managers have historically avoided crypto due to regulatory uncertainty and reputational concerns following the 2018 Coincheck hack, which resulted in $530 million in stolen NEM tokens.
SBI Group, the parent company of SBI Securities, already operates SBI VC Trade, a licensed cryptocurrency exchange. This existing infrastructure positions SBI Securities to move quickly on trust offerings. Rakuten Group similarly maintains crypto trading operations through Rakuten Wallet.
The timing aligns with growing institutional adoption across Asia. South Korea saw similar momentum when major brokerages launched crypto products following regulatory approval. Hong Kong approved spot Bitcoin and Ethereum ETFs in January 2024, spurring retail demand.
Crypto investment trusts appeal to risk-averse Japanese investors unfamiliar with direct exchange trading. Trusts provide professional custody, regulatory oversight, and integration within existing brokerage accounts. Fee structures typically range from 0.5% to 2% annually.
These product launches will likely accelerate retail crypto adoption in Japan, where Bitcoin holdings remain modest compared to the U.S. and Europe.