Laser Digital, a subsidiary of Nomura, is reportedly in initial discussions with Japan’s Financial Services Agency to seek a crypto asset trading license.
Summary
- Laser Digital, owned by Nomura, is preparing to apply for a crypto trading license in Japan aimed at institutional clients.
- Despite facing recent financial challenges, Nomura is intensifying its crypto initiatives through Laser Digital, including funds, stablecoin projects, and acquisitions.
A Bloomberg report states that Laser Digital Holdings plans to seek a crypto trading license to provide services to institutional clients. The Switzerland-based firm is reportedly engaging in pre-consultation discussions with Japan’s Financial Services Agency regarding the license.
Upon receiving approval from the FSA, Laser Digital will have the capability to offer broker-dealer services to both traditional financial institutions and crypto firms, in addition to digital-asset exchanges operating in Japan.
Jez Mohideen, CEO of Laser Digital, shared with Bloomberg that the company’s entrance into Japan signifies their confidence in the ongoing growth of the nation’s crypto sector.
Recently, Japan’s crypto transaction volume has doubled within just seven months, reaching 33.7 trillion yen or around $230 billion, according to data from the Japan Virtual and Crypto assets Exchange Association.
This demonstrates a resurgence of interest in the Japanese crypto market as more investors turn to digital assets.
Founded in 2022, Laser Digital has begun providing a variety of digital-asset services, including asset management and venture capital. The Nomura-owned subsidiary obtained a full crypto business license in Dubai in 2023 and established a Japanese unit that same year.
However, Laser Digital has faced setbacks due to its losses. Nomura reported a quarterly loss in its European market largely attributed to Laser’s “not very good” performance. Back in 2022, Mohideen anticipated that Laser would be profitable within two years of its inception, but later acknowledged that reaching breakeven might take longer.
Nomura’s move into crypto
This is not Nomura Holdings’ first venture into the crypto domain through its subsidiaries. Through Laser Digital, Nomura has introduced products such as the Bitcoin Adoption Fund and Ethereum Adoption Fund, which provide institutional investors with exposure to these assets, sometimes including yield enhancements like staking.
Additionally, Laser Digital is exploring the development of stablecoins in Japan, including both JPY-pegged and USD-pegged tokens, in partnership with GMO Internet Group. This includes offering “Stablecoin-as-a-Service,” with support for regulatory compliance, back-end services, and blockchain integration.
Last October, Komainu, a crypto custodian backed by Nomura Group, acquired crypto custodian firm Propine, sparking speculation about Nomura’s plans for further acquisitions in the crypto space for web3 expansion.
