In a strategic move to expand its digital asset offerings, Japanese financial services group Fisco has announced the launch of a new cryptocurrency fund. This initiative follows the company's earlier introduction of bitcoin-denominated corporate bonds and signals a growing commitment to cryptocurrency-based financial products.
The Tokyo-based firm, which operates one of Japan’s first officially licensed cryptocurrency exchanges, continues to pioneer innovative crypto investment vehicles in the regulated Japanese market.
Fisco Introduces Cryptocurrency Fund
Fisco has officially launched a digital currency investment fund, marking a significant development in Japan’s financial sector. According to reports, this is the first fund of its kind within the country.
The fund began operations earlier this month with initial investments exceeding ¥300 million (approximately $2.67 million). These assets are allocated across major cryptocurrencies including Bitcoin, with returns generated through arbitrage opportunities across domestic and international digital asset exchanges.
The company has also secured investments from two listed fintech firms alongside its own capital. The fund is targeting an annual return of 20%, reflecting the growing institutional interest in cryptocurrency as an asset class.
Fisco, which has been operating since 1995 and is listed on the Jasdaq exchange, received formal approval from Japan’s Financial Services Agency (FSA) in September as one of the country’s first licensed cryptocurrency exchanges. The platform currently supports trading of Bitcoin (BTC), Monacoin (MONA), and Bitcoin Cash (BCH) against the Japanese yen.
From Bitcoin Bonds to Crypto Funds
This new fund builds on Fisco’s earlier innovations in crypto-linked financial products. In August, Fisco Cryptocurrency Exchange issued Japan’s first bitcoin-denominated corporate bonds. These unsecured bonds carried a 3% interest rate and were structured to repay investors 200 bitcoin upon maturity in August 2022.
According to the company’s year-end investor report, Fisco has allocated significant management resources to several cryptocurrency-related initiatives. The report highlighted that beyond the bitcoin bond issuance, the company established a dedicated cryptocurrency fund management division last year to oversee this new fund.
Additionally, in October, the group formed a holding company named Fisco Digital Asset Group, consolidating its digital asset operations under a single entity. This restructuring supports the company’s broader strategy to develop and launch a variety of cryptocurrency products and services.
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Expansion into Derivatives and Broader Services
Looking ahead, Fisco has outlined plans to expand its service offerings significantly. The company intends to introduce virtual currency derivatives, enhance its B2B services—including the issuance of cryptocurrency corporate bonds—and develop B2C solutions such as crowdfunding platforms.
These initiatives align with a broader trend of traditional financial institutions entering the digital asset space, leveraging their expertise to create structured products that appeal to both institutional and retail investors.
The move also reflects Japan’s progressive yet regulated approach to cryptocurrency, fostering innovation while ensuring investor protection through strict licensing requirements and ongoing oversight.
Frequently Asked Questions
What types of cryptocurrencies does Fisco’s fund invest in?
The fund primarily invests in Bitcoin and other major digital currencies. It aims to profit from price differences across various cryptocurrency exchanges through arbitrage strategies.
How does Fisco’s cryptocurrency fund generate returns?
Returns are generated through market arbitrage, leveraging price discrepancies of cryptocurrencies across different exchanges. The fund targets an annual return of 20%.
Is Fisco’s cryptocurrency exchange regulated?
Yes, Fisco Cryptocurrency Exchange is one of the first platforms to be licensed by Japan’s Financial Services Agency, operating in compliance with national financial regulations.
What other crypto products does Fisco offer?
Besides the new fund, Fisco has issued bitcoin-denominated corporate bonds and plans to launch derivatives, B2B services, and crowdfunding solutions in the future.
Can international investors participate in Fisco’s fund?
Currently, the fund is focused on domestic investors, but Fisco’s expanding digital asset strategy may include global opportunities in the future.
How does Fisco ensure security for its crypto products?
As a licensed exchange, Fisco adheres to strict operational and cybersecurity standards set by Japanese regulators, including robust custody and transaction monitoring systems.