The management of the Japanese banking giant Nomura Holdings is confident that despite the current crypto winter, investments by institutional investors in cryptocurrencies will bring profit within a few years.
In September 2022, Nomura Bank launched Laser Digital, a digital asset division, to provide an opportunity for large clients to earn on investments in cryptocurrencies. Laser Digital chief executive Jez Mohideen said the division could expand its team to 50 by March.
Mohideen noted that thanks to the “shake-up” of the cryptocurrency market due to the situation with the FTX exchange, investors can buy major cryptocurrencies at an attractive rate for long-term storage. He noted that even if many cryptocurrencies have fallen by more than 70% over the past year, investors should keep in mind that they need to invest in digital assets for at least 5-10 years.
“Recent developments in the cryptocurrency market will attract institutional investors to digital asset management companies. We have done a lot of stress testing, and given the worst-case scenario in terms of market size and volatility, we have come to the conclusion that Laser Digital can become profitable within two years,” said Mohidin.
He added that the bank’s cryptocurrency division is focused on three areas: asset management, trading and venture fund. In particular, the leadership of Laser Digital plans to invest in early-stage startups that create cryptocurrency products for large financial companies. However, trading in cryptocurrencies is the main source of income for Laser Digital, Mohideen said.
Nomura is showing interest not only in cryptocurrencies, but also in blockchain. A few years ago, the bank took part in testing the CorDapp blockchain prototype for OTC trading. In addition, in 2020, Nomura Holdings, together with hardware wallet manufacturer Ledger and CoinShares, launched the Komainu custody service for digital assets.
Source: Bits
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