Japan’s Largest Brokerage Bets on Crypto Future as Institutional Demand Grows

Core Insights - Nomura Holdings is set to launch crypto trading services for institutional clients in Japan, indicating a significant move towards digital assets in the country's largest brokerage [1] - The initiative is driven by expectations of regulatory reforms, increased trading volumes, and growing interest from domestic financial institutions, suggesting a shift towards mainstream acceptance of crypto in Japan [1] Market Momentum and Institutional Participation - Nomura's subsidiary, Laser Digital, aims to become a broker-dealer pending regulatory approval, targeting banks, financial institutions, and licensed exchanges in Japan [2] - The CEO of Laser Digital emphasized the company's readiness to leverage anticipated regulatory changes, reflecting confidence in Japan's digital asset landscape [2] Industry Trends - Other domestic players, such as Daiwa Securities, are also embracing crypto, with Daiwa offering services that allow customers to use Bitcoin and Ethereum as collateral for yen loans, indicating a gradual integration of crypto into Japan's financial system [3] - The simultaneous moves by Nomura and Daiwa highlight the adaptation of Japan's top securities firms to evolving market conditions and regulatory reviews [5] Company Developments - Nomura established Laser Digital in 2022 to create a comprehensive suite of digital asset services and secured a full crypto business license in Dubai in 2023, followed by the establishment of a Japanese subsidiary [4] - Despite these advancements, Laser Digital has faced challenges, contributing to losses in Nomura's European operations during the April–June quarter [4] Institutional Demand - A 2024 survey by Nomura and Laser Digital revealed that over half of institutional investors plan to allocate to digital assets within three years, typically in the 2–5% range of their portfolios, with ETFs, staking, and lending products identified as key entry points [6]