Japan Opens Retail Cryptocurrency Access as Brokerages Build in-House Trusts
SBI Securities and Rakuten Securities, two of Japan’s largest retail brokerage platforms, are preparing to launch in-house investment trusts holding Bitcoin (BTC) and Ethereum (ETH), opening cryptocurrency access to millions of customers who hold accounts with mainstream financial providers rather than dedicated cryptocurrency exchanges. The move marks the most significant expansion of retail cryptocurrency access in Japan since the country formalized its crypto exchange licensing framework in 2017.
Bitcoin fell 1.25% in the 24 hours leading into May 18, but the Japan development reflects a structural shift in distribution that is independent of near-term price action.
What the Brokerages Are Building
SBI Securities and Rakuten Securities are building investment trust products that would allow retail customers to gain exposure to Bitcoin and Ethereum through instruments they can hold within their existing brokerage accounts. An investment trust in the Japanese regulatory framework functions similarly to a mutual fund, pooling investor capital to purchase an underlying asset and issuing units to investors in return.
This structure is distinct from a spot exchange-traded fund, the product that launched in the United States in January 2024 and attracted tens of billions of dollars in inflows.
Japanese securities law does not currently provide a direct path for a crypto ETF listed on an exchange the way U.S. law does for ETFs listed on the NYSE or Nasdaq. The investment trust format is the vehicle available under Japan’s Financial Instruments and Exchange Act, administered by the Financial Services Agency, known as the FSA.
By distributing through SBI Securities and Rakuten Securities, the trusts would reach a different and substantially larger retail population than the one served by dedicated cryptocurrency exchanges such as bitFlyer and Coincheck, which require separate account opening and operate under a distinct regulatory category.
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Background
Japan established formal cryptocurrency exchange regulation in April 2017 under an amendment to the Payment Services Act.
The country was among the first major economies to create a licensing regime for cryptocurrency businesses, a response in part to the collapse of the Tokyo-based Mt. Gox exchange in 2014, which at its peak handled more than 70% of global Bitcoin trading volume.
The FSA tightened standards further after the Coincheck hack of January 2018, in which approximately $530 million in NEM tokens were stolen.
Following that incident, the regulator introduced stricter custody requirements, cold storage mandates, and capital adequacy rules for licensed exchanges. Japan’s licensed exchange market stabilized through the early 2020s, with around 30 registered operators as of 2025.
The investment trust route for institutional and brokerage-distributed crypto products has been under discussion in Japan since at least 2023.
The FSA signaled openness to the format in a 2024 policy consultation that drew responses from major asset managers. SBI Group has been among the most active Japanese financial conglomerates in cryptocurrency, holding stakes in multiple crypto exchanges and operating SBI VC Trade, a licensed crypto exchange.
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Why the Distribution Channel Matters
The significance of brokerage-distributed investment trusts lies in the customer base they reach.
SBI Securities reported approximately 12 million customer accounts as of its most recent fiscal disclosure. Rakuten Securities reported around 11 million.
Combined, those two platforms hold accounts for a large portion of Japan’s retail investor population.
Dedicated cryptocurrency exchanges in Japan serve a narrower base. Customers willing to open a second account at a crypto exchange, complete additional know-your-customer checks, and manage a separate wallet infrastructure represent a self-selected segment.
Brokerage customers who can allocate a portion of their existing portfolio to a Bitcoin or Ethereum trust through the same interface they use to buy stocks represent a substantially broader and more passive investor profile.
The distinction matters for price dynamics as well. Passive brokerage inflows are less likely to create the rapid entry and exit cycles associated with active crypto trading, which may support more stable accumulation over time.
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Outlook
Japan’s move follows a broader global trend toward integrating cryptocurrency into mainstream financial distribution.
The United States launched spot Bitcoin ETFs in January 2024, followed by spot Ethereum ETFs in May 2024. Hong Kong approved spot crypto ETFs in April 2024.
Each of these developments extended the distribution of cryptocurrency exposure beyond dedicated exchanges into channels that reach more conservative, less active retail investors.
For Japan, the next steps depend on FSA approval of specific trust product filings and on pricing structures that make the trusts competitive with direct exchange access. Management fees on investment trust products in Japan typically range from 0.5% to 1.5% annually, which is higher than U.S. spot ETF fee rates.
Whether that cost differential deters uptake will become clear once products reach market, likely in the second half of 2026.
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