SBI Holdings and Rakuten, two of Japan's largest financial groups, are developing crypto investment trusts. The work comes as Japan formally reclassifies digital assets under securities law — a regulatory shift that could open the door for mainstream institutional money to flow into crypto through familiar vehicle structures.
SBI and Rakuten's trust plans
The two firms are building investment trusts that would hold digital assets. SBI already runs a crypto exchange; Rakuten has its own exchange too. But a trust is different — it's a pooled product that traditional investors can buy into without holding the underlying coins directly. Think of it like a mutual fund, but for crypto.
Neither company has disclosed which assets the trusts will hold or when they'll launch. The development was confirmed by sources close to the firms. It signals that Japan's biggest financial players see real demand for regulated crypto exposure.
Why the securities label matters
Japan is reclassifying digital assets as securities under its Financial Instruments and Exchange Act. That's a big deal. For years, crypto in Japan was treated more like a commodity — the Payment Services Act governed it. The shift means that crypto assets now fall under the same legal framework as stocks and bonds.
This reclassification makes it possible for firms like SBI and Rakuten to offer investment trusts that are compliant with securities law. It also brings clearer tax treatment, custody rules, and investor protections. Without it, these trusts wouldn't be viable for the broad market.
A signal for institutional adoption
SBI and Rakuten aren't fringe players. SBI is a publicly traded financial conglomerate; Rakuten runs one of Japan's largest e-commerce and fintech ecosystems. Their move into crypto trusts suggests that Japan's establishment sees digital assets as a legitimate asset class — not just a speculative niche.
The trust structure itself matters. Institutional investors like pension funds and insurance companies are comfortable with trusts. They're regulated, audited, and familiar. If SBI and Rakuten can get these products to market, they could pull in money that has stayed on the sidelines.
The trusts still need approval from Japan's Financial Services Agency. No timeline has been set. But with the securities reclassification now in effect, the regulatory groundwork is laid. The question is how quickly the FSA moves — and whether other Japanese firms will follow SBI and Rakuten's lead.
