Japan is reportedly considering a major policy change that would allow banks to invest directly in crypto assets, a move that could open the door to greater institutional involvement in the digital asset space.
If approved, the change could boost investment in major cryptocurrencies like Ethereum and Solana, which are often favored by institutions for their established ecosystems and utility in decentralized finance (DeFi).
The proposal comes amid broader discussions around regulatory modernization and growing institutional interest in diversifying beyond traditional financial products. Market watchers say such a move could bring increased liquidity, legitimacy, and long-term stability to the crypto sector.
Although Japanese regulators have not issued an official statement, industry leaders are closely monitoring developments. The timing coincides with heightened interest in crypto regulation and the upcoming Crypto 2025 Conference in Hong Kong, where policy and market integration are expected to be key topics.
Analysts point to historical trends showing that similar regulatory shifts in other markets have led to spikes in crypto investment and on-chain activity—particularly in governance tokens and Layer 1 blockchains.
As of October 19, Ethereum is trading at $3,921 with a market cap of $461.7 billion, despite recent price volatility. A policy change in Japan could reignite momentum for Ethereum, Solana, and other institutional-grade assets.
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