A survey by Nomura and its digital asset arm, Laser Digital, reveals that 79% of Japan's institutional investors intend to incorporate cryptocurrencies into their portfolios within the next three years. This marks a significant shift towards viewing crypto as a diversification tool, with many citing its low correlation with traditional assets as a key factor. Despite this interest, allocations are expected to remain modest, with over half of the investors planning to allocate between 2% and 5% of their portfolios to crypto. The survey also highlights a positive shift in sentiment, with 31% of respondents expressing a favorable outlook on crypto, up from 25% in 2024. Japan's robust regulatory framework, refined since the Mt. Gox collapse, supports this growing interest. Major financial institutions like SBI Holdings and Nomura are actively participating in the crypto ecosystem, with Nomura establishing Laser Digital in 2022 to expand into trading and asset management. Additionally, 60% of respondents are exploring income-generating strategies such as staking and lending, indicating a broader financial approach to crypto investments.