Japan’s financial landscape is shifting as the country’s largest online brokerages move to integrate digital assets into traditional investment portfolios. SBI Securities and Rakuten Securities are preparing to launch cryptocurrency investment trust products, a move that signals a transition for digital assets from niche trading platforms to mainstream brokerage accounts.
This strategic pivot aims to lower the barrier to entry for retail investors who have previously avoided the complexities of cryptocurrency exchanges. By offering these assets as investment trusts, the firms allow clients to gain exposure to the price movements of digital currencies without the technical burden of managing private keys or navigating specialized crypto-wallets.
The move follows a broader global trend toward the institutionalization of digital assets, mirroring the success of spot Bitcoin ETFs in the United States. However, the Japanese approach focuses on the “investment trust” model, which operates under the oversight of the Financial Services Agency (FSA) and the Financial Instruments and Exchange Act, providing a more familiar regulatory wrapper for conservative investors.
The strategies of SBI and Rakuten
While both firms are targeting the same market, their execution strategies differ. SBI Securities is leveraging a vertically integrated model to bring these products to market. The firm plans to sell funds developed by its own subsidiary, SBI Global Asset Management, focusing on highly liquid assets such as Bitcoin, and Ethereum.
By keeping the entire pipeline—from product development to final sale—within the group, SBI aims to maintain tighter control over costs and product design. This internal ecosystem allows the firm to streamline the offering and potentially offer more competitive fee structures to its user base.
Rakuten Securities is taking a more ecosystem-driven approach, collaborating with Rakuten Investment Management and other group entities. A primary focus for Rakuten is the user experience, with plans to facilitate the trading of these cryptocurrency investment trusts directly through its existing smartphone application. This integration is designed to capitalize on Rakuten’s vast existing retail ecosystem, making crypto-investing as seamless as buying a traditional mutual fund or stock.
| Feature | SBI Securities Plan | Rakuten Securities Plan |
|---|---|---|
| Development | Internal via SBI Global Asset Management | Collaborative via Rakuten Investment Management |
| Primary Assets | Bitcoin and Ethereum | Broad cryptocurrency trusts |
| Distribution | Integrated Group Sales | Smartphone App Integration |
| Strategic Goal | Vertical Integration | Ecosystem Accessibility |
Regulatory hurdles and industry sentiment
Despite the enthusiasm from the top two online brokers, the wider industry remains in a state of cautious anticipation. A survey of 18 major securities firms conducted by the Nikkei revealed that 11 of these institutions are considering offering similar products, but only once the regulatory framework is fully finalized.
Among those taking a “wait and see” approach is Nomura Securities, one of Japan’s most prestigious financial institutions. Nomura has indicated it will evaluate the viability of cryptocurrency investment trusts after the FSA establishes clear guidelines regarding the custody, valuation, and risk management of these digital assets.
The primary regulatory challenge lies in how these trusts are structured. Unlike a traditional ETF that might trade on an exchange, an investment trust in Japan often involves a trust bank acting as a custodian. Ensuring that the underlying crypto-assets are held securely and that the valuation reflects real-time market prices is a critical requirement for the FSA before a full-scale rollout can occur.
What this means for Japanese investors
For the average investor, the introduction of Japan cryptocurrency investment trust products represents a significant shift in risk management and accessibility. Currently, investing in crypto in Japan typically requires opening an account with a licensed cryptocurrency exchange, which involves a separate KYC (Know Your Customer) process and the management of digital security credentials.
Moving these assets into a securities account provides several advantages:
- Consolidated Reporting: Investors can view their crypto holdings alongside their stocks and bonds in a single portfolio.
- Simplified Tax Filing: While cryptocurrency taxation in Japan remains complex, managing assets through a securities firm may eventually lead to more streamlined reporting processes.
- Institutional Custody: The use of professional asset managers reduces the risk of individual loss due to forgotten passwords or hacked private wallets.
However, this convenience comes with a trade-off. Investors in these trusts do not “own” the underlying Bitcoin or Ethereum in a way that allows them to transfer the coins to an external wallet. They own shares of a trust that holds the assets, meaning they cannot use the currency for payments or decentralized finance (DeFi) applications.
The path toward institutional adoption
The willingness of firms like SBI and Rakuten to build internal infrastructure for these products suggests a long-term belief in the permanence of digital assets. By moving away from a reliance on external crypto-exchanges, these firms are positioning themselves as the primary gateways for the next generation of Japanese wealth management.
This shift also puts pressure on the FSA to accelerate the clarity of its rules. The tension between protecting retail investors from volatility and maintaining Japan’s competitiveness in the global fintech race has historically led to a conservative regulatory environment. However, the momentum from the world’s largest asset managers has made it increasingly hard for local regulators to remain stagnant.
Disclaimer: This article is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency investments carry a high degree of risk.
The next critical milestone will be the official announcement of the finalized regulatory framework from the Financial Services Agency, which will determine the exact timing of the product launches for SBI and Rakuten and potentially trigger a wave of entries from other major firms like Nomura.
Do you think traditional brokerage accounts are the right home for digital assets? Share your thoughts in the comments or share this story with your network.
Keep reading
