Japan’s Nomura Holdings to launch crypto subsidiary

Japanese investment bank, Nomura Holdings, is set to launch a subsidiary that will provide services related to decentralised finance, cryptocurrency, and non-fungible tokens. The new company will expand Nomura’s horizons by offering institutional investors access to the growing world of digital assets.

Scheduled to launch later this year, it will be based outside of Japan and staffed by a skilled workforce of 100 by the end of 2023. Specialist members of Nomura will be integrated into the board of the international unit. 

The new business will operate as a wholly-owned segregated entity of NHI, with dedicated capital and resources to accelerate time-to-market and keep up with the pace of innovation that the digital asset ecosystem is known for.

The move is certainly not out of the blue for Nomura. In 2019, the JP¥1.5 trillion (US$11.5 billion) market-cap lender ventured into new digital services with its Future Innovation Company, a business that sought to get a head start on the emerging asset classes. In April this year, the subsidiary was reorganised into the newly established ‘Digital Company.’

According to Nomura President and Group CEO, Kentaro Okuda, digital technology is a “critical part” of the company’s strategic drive to expand operations in private markets. The investment bank seeks to accelerate the development of digital technologies and enhance its client services internationally.

The former Global Head of Wholesale Digital Office, Jez Mohideen, has been appointed as CEO of the new unit. He describes the venture as a “critical foundation” for Nomura in “building an end-to-end digital asset offering.”

In the face of a rocky crypto market and muted investor sentiment, the Japanese group’s move attests to the confidence of the traditional financial sector in DeFi and blockchain technologies.