A Major Shift in the Japanese Financial Market: SBI and Rakuten Securities Launch In-house Virtual Asset Investment Trusts

On May 17, 2026, the Japanese financial market reached a historic turning point. Japan's largest brokerages, including SBI Securities and Rakuten Securities, officially announced the launch of their internally developed crypto investment trust products, moving to secure a market lead. This move follows a comprehensive regulatory overhaul by the Japan Financial Services Agency (FSA), marking a significant shift as Japan accepts crypto assets as major financial products within the institutional framework.

SBI Securities and Rakuten Securities will internally develop and manage the newly launched investment trust products without outsourcing. This provides an environment where individual investors in Japan can invest in major digital assets like Bitcoin through their existing brokerage accounts without needing to open separate crypto exchange accounts. Both companies aim to lead the popularization of crypto investment and secure market share through this product launch.

As crypto assets are reclassified as formal financial securities under the Financial Instruments and Exchange Act, Japan's asset management market has gained a new growth engine.

The Japan Financial Services Agency passed a bill reclassifying crypto assets from the previous 'other assets' category to 'financial securities' subject to the Financial Instruments and Exchange Act (FIEA). The establishment of this legal basis has become the foundation for brokerages to design complex financial products such as investment trusts. It has become possible to manage crypto assets within a clear legal framework, moving away from the opaque regulatory environment of the past.

Tax Reform and Market Competition Landscape

One of the most significant features of this regulatory reform is the drastic reduction of the tax rate on virtual asset gains from a maximum of 55% to a flat rate of 20%. This reflects the government's intention to treat virtual asset investments on the same level as stocks or bonds. Investors can now reduce their tax burden and build asset portfolios in a more transparent environment.

• Nomura Securities is carefully reviewing market entry until the details of the current regulatory framework are fully finalized.
• According to a survey conducted by the Nikkei Shimbun on 18 major securities firms, the majority of companies responded positively to the introduction of virtual asset investment trusts.
• Large banks such as Mitsubishi UFJ are accelerating the establishment of secure virtual asset custody services to support the product launches of securities firms.
• Small and medium-sized securities firms are also reported to be discussing the development of specialized virtual asset fund products in line with the moves of larger firms.

SBI Group has set an ambitious goal of increasing its virtual asset assets under management (AUM) to 5 trillion yen, starting with this deregulation. The new legislation has paved the way for institutional investors, such as pension funds, as well as individuals, to legally participate in the virtual asset market. The influx of institutional funds is expected to serve as an opportunity to secure both the stability and liquidity of the Japanese virtual asset market.

These changes in Japan are consistent with global market trends. Following the listing of Bitcoin and Ethereum spot ETFs on the Tokyo Stock Exchange in early 2026, this launch of investment trusts is evaluated as a stage that completes the digital transformation of the Japanese financial market. It is interpreted as an intention to strengthen global competitiveness by introducing investment structures already proven in advanced financial markets, such as the United States, to suit Japanese conditions.

2028 Roadmap and Future Challenges

The regulatory reform in 2026 is only the beginning, and the Japanese government plans to fully implement regulations on funds holding virtual assets by 2028. Over the next two years, the Financial Services Agency (FSA) plans to further strengthen security standards for virtual asset exchanges and expand disclosure obligations for investor protection. This is a measure to promote market growth while preventing risks such as large-scale hacking incidents that have occurred in the past.

The Japanese financial market has now entered a new era where virtual assets coexist with traditional financial assets. The launch of investment trusts by securities firms is an event that symbolizes the modernization of the Japanese financial system beyond the mere addition of products. In the future, investors will be able to participate in the growth of the digital asset market in a safer and more efficient way.

In conclusion, Japan's virtual asset market is signaling rapid expansion by achieving both regulatory clarity and tax benefits. The proactive responses of SBI and Rakuten are expected to trigger a chain reaction of market entries by other financial institutions. May 2026 is expected to be recorded as an important turning point for Japan to leap forward as a global digital asset hub.