by Enoch Mwathwa
Nomura Holdings, Japan’s largest brokerage, is moving aggressively into crypto trading. Through its subsidiary Laser Digital, the firm is seeking approval from Japan’s Financial Services Agency (FSA) to expand its presence in a rapidly growing digital asset market.
Nomura Pushes for Crypto Trading License
Laser Digital, Nomura’s digital arm, is in preliminary talks with the FSA for a crypto trading license. According to Bloomberg, the license would allow the company to provide Bitcoin, Ethereum, and other trading services to institutional investors. CEO Jez Mohideen confirmed the plan, citing a surge in Japanese crypto activity. Transactions more than doubled in the first seven months of the year, hitting 33.7 trillion yen ($230 billion).
With the license, Laser Digital would act as a broker-dealer for both traditional firms and crypto-native businesses. This would also cover aiding exchanges and financial institutions that would want to gain exposure to crypto markets. The relocation comes in line with the recent changes in taxation movements in Japan, where shortfall crypto gains were converted to a flat tax of 20 percent, similar to stocks and bonds. The investor participation and the institutional demand are being fuelled by these changes.
Nomura is no stranger to global expansion in digital assets. The firm has already secured approval to offer crypto derivatives in Dubai. It has also established itself in Singapore and is positioning itself to cater to the major hubs in Asia. Focusing on the regulated Japanese market, Nomura gives an indication that it wants to compete with the already established players, such as Ripple and SBI Holdings, that have long dominated the domestic crypto market.
Deeper Expansion into Japan’s Crypto Market
The digital initiative of Nomura started several years ago through Komainu, a regulated crypto custody platform, which was initiated in 2018 alongside Ledger and CoinShares. Laser Digital has since added adoption funds to Bitcoin and Ethereum, which provide institutions with a safe exposure to digital assets. In 2023, Nomura launched its own Bitcoin Adoption Fund, with long-term prospects of gaining value for professional investors.
The company has also made some steps towards the innovation of stablecoins. In association with GMO Internet Group, Laser Digital is considering JPY- and USD-pegged stablecoins. Its Stablecoin-as-a-Service model would facilitate issuance, compliance, and blockchain integration. This strategy is indicative of a move past trading to the creation of the infrastructure of the digital economy.
Nomura is persevering despite the financial difficulties that it encounters. The company reported losses tied to Laser Digital’s early performance in Europe, but executives remain confident. Mohideen admitted profitability might take longer than expected, yet emphasized that institutional demand is rising fast. With Japan’s regulatory clarity and market expansion, Nomura sees an opportunity to capture share from Ripple-led ventures.
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