The digital asset arm of Nomura is reportedly seeking to capitalize on the crypto market downturn and plans to generate a profit within two years.
In September, Nomura established Laser Digital based in Switzerland in an effort to lure institutional investors to digital asset adoption. Less than three months into the business, the market has been hit by the collapse of multiple players, most notably FTX, and this has allowed the Japanese crypto unit to hire talent more easily and acquire assets at a lower valuation.
According to chief executive Jez Mohideen in a «Bloomberg» report, Laser Digital aims to add 50 employees by March 2023. It is also seeking a license for its trading and asset management business in Switzerland and Dubai, before longer term plans to operate in the US and Japan.
«The latest events in the crypto market will provide an opportunity for us as it will drive institutional investors to digital asset firms backed by traditional finance houses,» Mohideen said. «We’ve run all the stress tests and assuming worst-case scenarios in terms of market volume, price volatility, we believe we can turn profitable within two years.»
«Significant Revenue Driver»
And more than just turning a profit, the Japanese banking giant hopes to make Laser Digital a sizeable contributor to its top line.
«Nomura is taking the digital-assets business very seriously. The intention and the vision of this entity is to be a significant revenue driver for Nomura group,» said Mohideen.
Laser Digital’s business contains three main verticals: trading, asset management and a venture capital fund. Trading will be the «core engine» to create revenues while the venture capital fund will aim to invest in 15 to 20 early stage deals in related startups.
