Nomura Unit Eyes Japan: Crypto Market Expansion & Challenges

Nomura Holdings, a prominent global financial services group, is strategically positioning itself to significantly expand its presence within Japan's burgeoning cryptocurrency market. This ambitious move is being spearheaded by Laser Digital Holdings, a Switzerland-based unit of Nomura, which is currently engaged in preliminary consultations with Japan’s Financial Services Agency (FSA). The objective is to secure a license that would permit Laser Digital to offer comprehensive trading services specifically tailored for institutional clients, signaling a notable progression towards integrating traditional financial entities into the evolving digital asset ecosystem.

Nomura’s Strategic Entry via Laser Digital

Laser Digital’s Chief Executive Officer, Jez Mohideen, recently articulated to Bloomberg that the ongoing application process is a clear testament to the group’s strong confidence in the viability and potential of Japan’s digital asset landscape. Launched in 2022, Laser Digital has already established a footprint in the global crypto arena, notably securing a full crypto business license in Dubai in 2023. This international success provides a strong precedent for its aspirations in the Japanese market.

Further solidifying its commitment, a dedicated Japanese subsidiary was established by Nomura in the same year. Should the regulatory authorities grant the necessary approval for the new application, Laser Digital intends to operate as a crucial broker-dealer. Its services would cater to a diverse array of institutional participants, including established banks, pension fund managers, and specialized cryptocurrency firms. Moreover, it aims to provide robust support to existing cryptocurrency exchanges operating within Japan, thereby enhancing the overall infrastructure and liquidity of the market.

Historical Context and Profitability Hurdles

Nomura’s vision for Laser Digital encompassed a broad spectrum of digital asset services, including asset management, strategic venture investments, and sophisticated trading solutions. However, the path to profitability for this unit has not been without its challenges. Earlier this year, Nomura reported a quarterly loss in its European operations, which was partially attributed to Laser Digital’s activities. Hiroyuki Moriuchi, Nomura’s CFO, candidly acknowledged that the unit’s financial performance was "not very good."

Mohideen had initially projected that Laser Digital would achieve a break-even point within two years of its launch. Nevertheless, these expectations were later revised, with Mohideen cautioning that realizing profitability might extend beyond the initial timeframe. This candid assessment underscores the inherent complexities and significant capital investment required to establish and scale operations within the highly competitive and rapidly evolving digital asset sector.

Japan’s Surging Digital Asset Landscape

Despite the individual challenges faced by some market entrants, the broader cryptocurrency market in Japan is experiencing a remarkable surge in activity. Data compiled by the Japan Virtual and Crypto Assets Exchange Association reveals a substantial increase in the value of crypto transactions. In the first seven months of the year, these transactions collectively amounted to an impressive ¥33.7 trillion, equivalent to approximately $230 billion. This figure represents an almost twofold increase compared to the transaction pace observed in the preceding period, highlighting a significant acceleration in market participation.

Furthermore, the on-chain value received within the Japanese digital asset ecosystem witnessed a dramatic 120% jump in the 12 months leading up to June 2025. This growth trajectory surpasses that of other prominent Asian markets, including South Korea, India, and Vietnam, positioning Japan as a leading hub for digital asset activity. Reports indicate that a confluence of supportive policy measures has been instrumental in attracting both a younger demographic of retail investors and a growing number of large institutional players. These measures include potential tax reductions and the introduction of new regulatory frameworks specifically designed for crypto funds, fostering a more conducive environment for investment and innovation.

Mainstream Finance Embraces Crypto

The increasing acceptance and integration of digital assets into mainstream financial services are becoming increasingly evident in Japan. A notable example is Daiwa Securities, which recently enabled clients across its 181 retail branches to utilize Bitcoin and Ether as collateral for yen-denominated loans. Such initiatives by major financial institutions signify a crucial shift, demonstrating a willingness to incorporate cryptocurrencies into conventional financial products and services, thereby expanding their utility and accessibility.

Additionally, the licensing of a yen-backed stablecoin issuer marks another significant development. The introduction of regulated stablecoins provides fund managers and traders with more stable and efficient tools for managing digital asset portfolios and facilitating transactions, further professionalizing the market infrastructure. These developments collectively point towards a maturing market where digital assets are no longer considered niche but are actively being integrated into the broader financial system.

Navigating Future Profitability and Regulatory Evolution

While trading volumes and on-chain metrics continue their upward trajectory, the long-term business case for many new entrants in the crypto space remains subject to scrutiny. Laser Digital’s initial losses and the extended timeline for achieving profitability serve as a stark reminder of the inherent risks and the competitive intensity within the sector. Establishing a sustainable and profitable business model in this dynamic environment requires not only significant investment but also adaptability to evolving market conditions and regulatory landscapes.

Nomura’s strategic expansion into Japan’s crypto market is undoubtedly a long-term play, reflecting a profound conviction in the future of digital assets. However, the short-term returns are inherently uncertain and will be heavily influenced by several critical factors. These include the sustained growth of institutional capital flows into the market and, crucially, the clarity and stability of the regulatory framework established by Japanese authorities. The interplay of market dynamics, technological innovation, and regulatory foresight will ultimately determine the success and profitability of such ambitious ventures in the years to come.