Japan's Brokerage Titans Chart Course for Crypto Trusts
In a significant move within Japan's financial sector, leading brokerages SBI Securities and Rakuten Securities have unveiled strategies to independently develop cryptocurrency investment trust products, signaling a deeper foray by traditional finance into digital assets.
In-House Development: Controlling the Value Chain
SBI Securities intends to launch funds developed entirely by its group's asset management arm. These products are expected to focus on high-liquidity cryptocurrencies like Bitcoin and Ethereum, offering exposure through structures such as ETFs and investment trusts. The strategy emphasizes a vertically integrated approach, from product creation to distribution.
Echoing this model, Rakuten Securities is collaborating with its group's investment management division to create crypto trust products accessible via smartphone apps. This initiative targets the growing demand for mobile-first investment solutions, aiming to simplify access for retail investors.
Regulatory Tailwinds: Legal Reform and Tax Incentives
These market developments align with proactive regulatory shifts. Japan's Financial Services Agency is advancing amendments to the enforcement ordinance of the Investment Trusts Act. The key objective is to classify cryptocurrencies as permissible "specific assets" for investment trusts by 2028.
The legislative process has gained momentum. A related bill amendment received government approval in April and now awaits parliamentary deliberation. If passed, the new rules are projected to take effect in fiscal year 2027. A pivotal accompanying change is a major tax overhaul: the maximum tax rate on cryptocurrency trading profits will be slashed from the current 55% to 20%, aligning it with the treatment of stocks and bonds.
Market Outlook: Mainstream Adoption on the Horizon
The anticipated regulatory clarity is boosting industry confidence. Previous surveys indicate that a majority of major Japanese brokerages are considering launching crypto-related products once the regulatory framework is firmly established. Pioneered by SBI and Rakuten, a wave of crypto-financial services led by mainstream institutions is poised to reshape Japan's investment landscape, with potential ripple effects across global markets.