Japan Brokerages Build Crypto Funds as 2028 Reform Nears

• SBI Securities and Rakuten Securities are developing crypto investment trusts for retail distribution in Japan.
• Nikkei-sourced reporting said 11 of 18 major brokerages would consider similar products once rules are finalised.
• Japan’s FSA is working toward a framework that could allow crypto investment trusts and ETFs by 2028.

Japan’s largest online brokerages are preparing crypto investment trusts for retail investors, pushing digital assets closer to mainstream within the country.

According to a report from Nikkei, SBI Securities and Rakuten Securities are developing products internally, with SBI Securities planning to distribute funds built by group company SBI Global Asset Management, with the lineup expected to focus on liquid assets such as Bitcoin and Ether.

Rakuten Securities is taking a similar approach through Rakuten Investment Management. Its products are being designed so investors can trade them directly through Rakuten’s smartphone app.

Related: Claude Allegedly Helps Unlock US$400K Bitcoin Wallet Dormant Since 2015 

Reform Opens The Door

Japan’s Financial Services Agency is working on changes to the Investment Trust Act enforcement order by 2028. The revision would formally add cryptocurrencies to the list of specified assets that investment trusts are allowed to hold.

A separate bill approved by Japan’s cabinet in April would reclassify crypto under the Financial Instruments and Exchange Act. If passed in the current Diet session, the change could take effect as early as fiscal 2027 and place crypto under the same securities framework as stocks and bonds.

Major brokerages are preparing early. Nikkei’s survey of 18 large Japanese securities firms found 11 would consider offering crypto investment trusts once the framework is finalised. 

Nomura, Daiwa, SMBC and Mizuho-linked Asset Management One were among the firms reported to be watching the opening.

We can see how the securities industry is already building internal expertise, with SMBC Nikko creating a DeFi Technology Department in February to explore crypto asset opportunities from a securities-company perspective.

SBI’s presentation cited roughly 14 million crypto asset accounts in the country, suggesting a large existing base that could migrate from exchange-based trading into regulated fund wrappers if tax and product rules become more favourable.

Related: Australia’s Proposed Tax Overhaul Could Increase Tax on Long-Term Crypto Holdings 

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