Nomura subsidiary eyes crypto license in Japan: report

Nomura-owned subsidiary, Laser Digital, is reportedly in preliminary discussions with Japan’s Financial Services Agency to apply for a crypto asset trading license.

According to a Bloomberg report, Laser Digital Holdings is planning to apply for a crypto trading license in order to offer trading services to institutional clients. The Switzerland-based firm is reportedly in pre-consultation talks with Japan’s Financial Services Agency for the license.

If granted approval by the FSA, Laser Digital will be able to provide broker-dealer services for both traditional financial institutions and crypto firms, as well as digital-asset exchanges operating in Japan.

Chief Executive Officer of Laser Digital, Jez Mohideen, said to Bloomberg that the firm’s entry into Japan reflects their optimism in the continued growth of Japan’s crypto industry.

As of late, the volume of crypto transactions in Japan has managed to double in just the span of seven months this year, catapulting to 33.7 trillion yen or approximately $230 billion according to data from the Japan Virtual and Crypto assets Exchange Association.

This shows that there has been renewed interest in the Japanese crypto industry as more investors flock to digital assets.

Established in 2022, Laser Digital has already started offering a range of digital-asset services including asset management and venture capital. The Nomura-owned subsidiary firm obtained a full crypto business license in Dubai in 2023. It also set up a Japanese unit within that same year.

Unfortunately, Laser Digital has been pulled back by its losses. Nomura reported a quarterly loss in its European market in most part due to Laser’s “not very good” performance. Back in 2022, Mohideen had expected Laser to turn a profit within two years of its launch, though he later cautioned that breaking even might take longer.

Nomura makes moves into crypto

This is not the first time Nomura Holdings’ makes a move into the crypto space through its subsidiaries. Through Laser Digital, Nomura has launched products such as the Bitcoin Adoption Fund and an Ethereum Adoption Fund. These products give institutional investors exposure to those assets, sometimes with yield enhancements like staking.

Not only that, Laser Digital is exploring the creation of stablecoins in Japan, both JPY-pegged and USD-pegged tokens, in collaboration with GMO Internet Group. This includes “Stablecoin-as-a-Service” offerings, with regulatory, back-end, and blockchain integration support.

Back in October last year, Komainu, a crypto custodian provider backed by Nomura Group, purchased crypto custodian firm Propine. The purchase led to speculation that Nomura would be acquiring more crypto firms to expand into web3.