Japan’s largest investment bank, Nomura is set to establish a new subsidiary company to help institutional clients invest in cryptocurrencies and non-fungible tokens (NFTs)..
The Financial Times reported on Tuesday that people with knowledge of Nomura’s plans said that the firm will bring together several cryptocurrency services under a single company with a staff of around 100 people by 2023.
Nomura is one of the ten largest banks in Japanwhich had $569 billion in assets under management in the first quarter of 2022.
Nikkei Asia, a Japanese media outlet, reported that Subsidiary company will be established overseas, but board of directors will start sitting by transplants from Nomura while company acquires talent in the Web3 and blockchain space. It will initially be led by Jez Mohideen, Nomura’s head of wholesale digital operations.
The bank appears to be feeling increasing pressure to become more intimately familiar with the burgeoning blockchain technology and digital assets sector.. A Nomura executive told the Financial Times that “If we don’t do this, it’s going to be harder later on to be competitive.”
The move to expand cryptocurrency services comes at an interesting juncture for Nomura. On Thursday of last week, Bloomberg reported that the bank began offering bitcoin (BTC) derivatives trading to Asian customers. Trades are executed on the CME Group platform, which managed 6,944 bitcoin futures contracts on May 16.
Besides, Cryptocurrency prices are down across the board since last week’s big sell-off due to panic caused by the Terra platform crash.
Nomura must also now combat the prospect of losing most of its quarterly earnings due to a $345 million loss in a transaction the FT also reported on Tuesday, which occurred during the 2008 economic downturn.. The bank has not specified what transaction it is. Depreciation is a reduction in the value of a transaction or an asset.
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