Nomura has had a history in the digital asset market, namely through its stake inKonimanu, a digital asset custody joint venture it created with digital asset security firm Ledger and digital asset investment house CoinShares in 2018.
Later this year, global banking giant Nomura Holdings plans to launch a digital asset company that will cater to institutional clients with a portfolio of trading, investment products and services—cryptocurrencies, stablecoins and non-fungible tokens as well as other elements of decentralized finance.
“The new company will enable us to build an edge in providing institutional clients with access to a wide range of new products and services and contribute meaningfully towards responsible innovation in the digital asset ecosystem,” said Steve Ashley, chair of the new company and head of Nomura’s Wholesale Division, in a prepared statement.
David Easthope, head of Fintech, Market Structure & Technology at analysis firm Coalition Greenwich, expects many such major announcements from leading global investment banks in the coming months, as they “consider their owncrypto/digitalasset offerings, usually in partnership with technology vendors, to compete with the crypto-native pioneers that have been active in the space.” One driver of the trend, he notes, is “institutional acceptance increas[ing] over time, albeit in cycles and fits and starts.”
Nomura has had a history in the digital asset market, namely through its stake of Konimanu, a digital asset custody joint venture it created with digital asset security firm Ledger and digital asset investment house CoinShares in 2018. Such an approach is typical for the largest financial institutions.
“Major banks have been cautious to roll out crypto services due to balance sheet issues, and technology gaps, and have tended to go the joint venture and/or the partnership route,” Easthope says.
The bank’s announcement comes on the heels of its establishment in April of a new digital company out of the re-organization of Nomura’s Future Innovation company, which held a mandate to build the bank’s presence in the digital asset market.
“This is an important next step in our digital evolution,” said Kentaro Okuda, Nomura President and Group CEO, at the time. “Digital technology is a critical part of our strategic drive to expand our operations in private markets.”