Despite the recent volatility in the cryptocurrency market, Nomura is preparing to start a new business to help institutional clients diversify into cryptocurrency, decentralized finance (DeFi) and non-replaceable tokens (NFTs). By the end of 2024, Japan’s largest investment bank will most likely integrate a number of digital asset services into one wholly-owned company with about 100 employees. The announcement of Nomura’s plans, which has been four years in the making, comes as the value of some of the world’s most well-known cryptocurrencies has plummeted, fueling fears for the entire industry.
According to a report in CoinDesk, the unit’s newly appointed CEO, Jez Mohideen, said they would look at the “top 10 cryptocurrencies by market capitalization” to begin with.
Mohideen added that they will then move further up the market capitalization chain to evaluate opportunities based on institutional demand. So if DeFi protocols are introduced in their own launch pads, they will try to make markets there as well.
While banks have been experimenting with cryptocurrency for some time, many have confined themselves to derivatives or exchange-traded products that traded or researched various types of digital assets. Nomura was one of the first to explore crypto asset preservation through the Komainu custody consortium, which also included investment firm CoinShares and storage expert Ledger, and was also one of the first to state that it plans to dig deeper into the ecosystem. to go.
According to Mohideen, NFTs will come later and only as a carefully evaluated business opportunity that focuses on the intersection of the so-called Web 3 and traditional finance (TradFi).
Nomura joins the ranks of Goldman Sachs, Citigroup, Bank of New York Mellon and other major financial organizations that have recently entered the cryptocurrency industry.
Despite the concerns, Nomura executives indicated that institutional client interest in digital assets has been strong and will continue to grow as the market for cryptocurrencies, NFTs and other assets became more attractive as a way to diversify more traditionally managed portfolios.