Nomura lowers its profit projections for Laser Digital in light of the dwindling trading volumes in the crypto market and places wagers on BlackRock’s entry.
In light of the recent decline in the cryptocurrency market, the banking behemoth Nomura Holdings Inc. recently stated that its cryptocurrency unit, Laser Digital, may take longer than anticipated to become profitable.
Nomura launched its crypto unit in September 2022 to achieve profitability by 2024. The chief executive officer of Laser Digital, Jez Mohideen, stated that the crypto unit confronts the brunt of the industry’s turmoil. Mohideen, in an interview with Bloomberg, stated:
“Our profitability journey may take a bit longer than we forecast a year ago. Volumes have come down, activity has shrunk, regulators’ needs are changing – all these are leading to some delays in our overall journey including profitability.”
Immediately following the introduction of Nomura’s Laser Digital crypto unit, the crypto market experienced the collapse of FTX, resulting in a significant market correction.
The crash wiped out more than $2 trillion from the cryptocurrency market, causing a severe liquidity crunch and regulatory crackdowns around the globe.
Nomura Places a Wager on BlackRock Entry
Mohideen is optimistic that the expanding interest of well-established financial institutions such as BlackRock Inc. and other institutions in the crypto space will result in a favorable shift for digital assets.
In June, the world’s largest asset manager lodged a request in the United States to introduce Bitcoin spot exchange-traded funds (ETFs).
In addition, EDX Markets, a cryptocurrency exchange backed by Citadel Securities, Fidelity Digital Assets, and Charles Schwab Corp, debuted earlier this year. Mohideen averred:
“More institutions and institutional projects coming in despite the market turmoil gives me confidence. The future is brighter but it may take longer.”
Additionally, the Zurich-based corporation intends to expand to other global locations. Laser Digital has recently obtained a license to conduct business in Dubai, allowing it to progressively introduce its three core business segments — trading, asset management, and venture capital — in the emirate.
Laser Digital has already hired 70 professionals and plans to add up to 20 more. Mohideen stated that as part of Nomura’s crypto subsidiary, the company is establishing a Tokyo office to support its global trading activities. He added that the Tokyo office will hire between four and six employees.
