Nomura’s Laser Digital bets on Japan’s crypto market to sustain growth

Laser Digital, Nomura’s digital asset subsidiary, has announced a strategic expansion into Japan’s cryptocurrency market. Establishing a new Tokyo office will allow Laser Digital to capitalize on the region’s growing digital asset ecosystem. Laser Digital plans to offer institutional clients exposure to Bitcoin (BTC) and other cryptocurrencies through a range of investment products.  

Hideaki Kudo, a former Nomura executive with experience in security token development and asset management, will lead the Tokyo office. The investment bank maintains its commitment to leveraging local expertise for its crypto initiatives.  

Laser Digital bets on Japan as institutional crypto demand expands

Nomura’s Chief Digital Officer for wholesale business, Jez Mohideen, has previously highlighted Japan’s regulatory clarity as a catalyst for retail and institutional participation, particularly amid U.S. tariff uncertainties.

He added that the Switzerland-based unit is currently in pre-consultation talks with Japan’s Financial Services Agency.

US President Donald Trump’s pro-crypto stance has supported the growth of Digital asset ecosystems. According to data from the Japan Virtual and Crypto Assets Exchange Association, the value of Japan’s crypto transactions more than doubled in the first seven months of the year, reaching ¥33.7 trillion ($230 billion).

Expected changes in Japan, such as tax cuts and the establishment of crypto-focused funds, are also attracting new individuals to enter the market.

The announcement follows the trends in the cryptocurrency ecosystem, which is becoming more accepted in regular financial services in Japan. Daiwa Securities Group Inc., Japan’s second-largest brokerage after Nomura, announced earlier this week that clients at its 181 retail offices can use Bitcoin and Ether as collateral to borrow yen.

Japan’s FSA recently revised its FIEA framework to treat digital assets as securities. The amendment has enabled the development of regulated crypto ETFs, including spot Bitcoin ETFs and Ethereum spot ETFs. The changes in Japan’s regulatory landscape reflect trends in other markets, such as the UAE and Hong Kong, as they establish themselves as global marketplaces for digital assets.

According to a Nomura press release, Nomura’s collaboration with GMO Internet Group and Laser Digital in 2024 laid the groundwork for its cryptocurrency ambitions. The partnership aims to launch yen- and dollar-pegged stablecoins, which comply with the Financial Services Agency’s (FSA) requirements for fiat-backed reserves and registration.

Nomura’s strategic timing appears to capitalize on Japan’s regulatory momentum.

Global players target Japan’s rapidly shifting crypto market

Bloomberg reported that the collaboration introduces a “Stablecoin-as-a-Service” model, enabling businesses to navigate regulatory compliance and blockchain integration seamlessly. Such innovation not only enhances digital finance infrastructure but also positions Japan as a hub for cross-border transactions, where stablecoins could bridge traditional and decentralized ecosystems.

Laser’s performance has been challenging recently, including the reported loss in Europe earlier this year, which the company’s Chief Financial Officer, Hiroyuki Moriuchi, described as “not very good.” Mohideen initially thought Laser would start making a profit within two years of launching, but he later stated that it might take longer to break even.

Despite these challenges, Nomura’s plan to expand into Japan demonstrates its goal of strengthening its position in a rapidly changing market that is attracting many international financial companies. For regulators, the entry of new firms like Laser shows the need to carefully balance encouraging innovation with maintaining tight control and oversight.

At the time of publication, the Japanese yen had weakened by 0.14% to around 147.67 against the dollar. Additionally, it has maintained a 7.04% YTD against the dollar, showing an increased demand for the Yen. 

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