Benzinga - Nomura (NYSE: NMR), a Japan-headquartered global financial services group, announced its cryptocurrency unit Laser Digital is likely to take a longer period to report profitability levels.
This is due to many factors like shrinking volumes, narrowing activity and changing needs of regulators in the crypto space.
Laser Digital started in September 2022 and was targeted to turn profitable by 2024. While the company has 70 employees currently, it plans to expand the team by up to 20 more over a period. It also wants to establish a Tokyo office with four to six professionals to provide support to its global trading activities.
To see what the future holds for Nomura’s crypto unit, find out more at Benzinga's Future of Crypto event in New York City on Nov. 14, 2023. Stay updated on trends like AI, regulations, SEC actions and institutional adoption in the crypto space. Secure early bird discounted tickets now!
Post-launch of Laser Digital, the crypto market was dented by the FTX collapse which led to a major market correction. More than $2 trillion was washed out from the cryptocurrency market causing major liquidity crunch and regulatory crackdowns worldwide.
See Also: Bitcoin's Next Big Move? 'Mid-Cycle Lull' Signals November 2024 Bull Run, Expert Predicts
CEO Analyses Market Sentiment: CEO Jez Mohideen is also very positive about the interest of big financial companies in the crypto space. He added, “More institutions and institutional projects coming in despite the market turmoil gives me confidence. The future is brighter, but it may take longer.”
He specifically mentioned BlackRock Inc.’s (NYSE: BLK) application for a Bitcoin ETF, which clearly helped the asset class move into the mainstream after the asset manager swung negative opinion to positive about cryptocurrencies. Societe Generale SA (OTCMKTS: SCGLY) also received France’s first crypto license in July.
Laser Digital nabbed a license to conduct operations in Dubai which will allow a gradual introduction of its three core business segments: trading, asset management and venture capital in the region. Also, Komainu secured an operating license from Dubai's Virtual Asset Regulatory Authority (VARA). Komainu is a joint cryptocurrency custody venture involving Nomura, Ledger and CoinShares.
Read Now: Komainu Secures Lucrative Dubai License To Offer Custody Services To Crypto
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