Key Takeaways
- • Nomura Holdings, Japan's largest securities firm managing $673 billion in client assets, plans to launch cryptocurrency trading services through its Swiss subsidiary Laser Digital by end of 2026, targeting institutional investors ahead of anticipated ETF regulatory changes in Japan.
- • Four out of five institutional investors (80%) surveyed plan to allocate capital to cryptocurrency within two to three years, with decentralized finance (DeFi) emerging as a top investment focus area among sophisticated investors.
- • Laser Digital is actively pursuing a Japanese business license and regulatory approval from Japan's Financial Services Agency (JFSA), positioning itself to offer broker-dealer services to traditional financial institutions and local crypto companies.
- • Two peer securities giants—Daiwa Securities Group and SMBC Nikko Securities—are also preparing to enter the crypto exchange market, while other major players like SBI Holdings and Monex Group have already acquired smaller crypto exchanges through M&A activity.
- • Japanese institutional investors increasingly view crypto as mainstream, with evidence including the use of Bitcoin and Ether as collateral for yen borrowing and the anticipation of tax-advantaged crypto investment trusts following regulatory relief measures.
Summary
Japan's three largest securities firms are preparing a coordinated pivot into cryptocurrency trading, capitalizing on surging institutional demand as regulatory barriers lower. Nomura Holdings, which manages approximately $673 billion in client assets, is spearheading this expansion through Laser Digital, its Switzerland-based crypto subsidiary established in 2022. The firm targets a launch of cryptocurrency trading services by end of 2026, with CEO Jez Mohideen confirming active negotiations with Japan's Financial Services Agency for a business license.
Daiwa Securities Group and SMBC Nikko Securities are similarly preparing entry into the crypto exchange market, according to reporting from Nihon Keizai Shimbun. These moves anticipate a structural shift in Japanese institutional investing, driven by the lifting of restrictions on crypto exchange-traded funds and the introduction of tax-advantaged crypto investment trusts. The three firms collectively represent approximately $48 billion in market capitalization and serve as primary targets for institutional asset deployment.
Institutional demand underpinning this expansion is substantial. Recent survey data indicates that 54% to 80% of Japanese institutional investors plan to allocate capital to cryptocurrencies over the next two to three years, with decentralized finance (DeFi) protocols identified as a top focus area. An EY survey of over 270 institutional investors found 55% planned crypto allocation within the same timeframe, suggesting consistent institutional appetite across methodologies.
Laser Digital's regulatory positioning reflects the competitive intensity of Japan's crypto market. The subsidiary already holds a full cryptocurrency license in Dubai and provides services spanning asset management, venture capital, and trading infrastructure. Regulatory requirements for crypto exchange operations in Japan remain stringent, with only a handful of tech startups having successfully obtained operating permits to date. Other major securities players—SBI Holdings and Monex Group—have circumvented this barrier through acquisitions of smaller permit-holding exchanges.
The securities firms will primarily target corporate and institutional clients rather than retail investors, reflecting the sophistication of capital flows into digital assets. This institutional-focused strategy aligns with broader market evolution, as traditional finance increasingly integrates cryptocurrencies into standard investment offerings. Evidence of this integration includes Daiwa Securities Capital Markets' recent decision to allow clients to use Bitcoin and Ether as collateral for yen borrowing, signaling normalization of crypto assets within institutional banking relationships.
Daiwa Securities Group and SMBC Nikko Securities are similarly preparing entry into the crypto exchange market, according to reporting from Nihon Keizai Shimbun. These moves anticipate a structural shift in Japanese institutional investing, driven by the lifting of restrictions on crypto exchange-traded funds and the introduction of tax-advantaged crypto investment trusts. The three firms collectively represent approximately $48 billion in market capitalization and serve as primary targets for institutional asset deployment.
Institutional demand underpinning this expansion is substantial. Recent survey data indicates that 54% to 80% of Japanese institutional investors plan to allocate capital to cryptocurrencies over the next two to three years, with decentralized finance (DeFi) protocols identified as a top focus area. An EY survey of over 270 institutional investors found 55% planned crypto allocation within the same timeframe, suggesting consistent institutional appetite across methodologies.
Laser Digital's regulatory positioning reflects the competitive intensity of Japan's crypto market. The subsidiary already holds a full cryptocurrency license in Dubai and provides services spanning asset management, venture capital, and trading infrastructure. Regulatory requirements for crypto exchange operations in Japan remain stringent, with only a handful of tech startups having successfully obtained operating permits to date. Other major securities players—SBI Holdings and Monex Group—have circumvented this barrier through acquisitions of smaller permit-holding exchanges.
The securities firms will primarily target corporate and institutional clients rather than retail investors, reflecting the sophistication of capital flows into digital assets. This institutional-focused strategy aligns with broader market evolution, as traditional finance increasingly integrates cryptocurrencies into standard investment offerings. Evidence of this integration includes Daiwa Securities Capital Markets' recent decision to allow clients to use Bitcoin and Ether as collateral for yen borrowing, signaling normalization of crypto assets within institutional banking relationships.
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