Nomura announces crypto subsidiary plans, launches bitcoin derivatives for Asian clients

Nomura announced the creation of a new digital asset company that will offer institutional clients trading, investor products and investment services, linked to cryptocurrencies, stable coins, decentralized finance (DeFi), non-fungible tokens (NFTs) and other tokens. It is due to launch later this year.

Steve Ashley, chair of the new company and Head of Wholesale Division, said in a statement: “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.”

It will operate as a wholly owned segregated entity of NHI, with dedicated capital and resources to accelerate time-to-market and ensure the pace of innovation required in the digital asset ecosystem. Specialist staff from Nomura will be integrated into the new company in addition to external hires.

Today’s announcement follows the establishment of Nomura’s Digital Company in April this year. It was formed following a reorganization of Nomura’s Future Innovation Company, with one strategic intention of building Nomura’s presence in the digital asset space.

Hajime Ikeda, head of Digital Company, said in the statement: “Digital assets and the ecosystem around them represent a generational shift in how financial assets can be created and used.”

“Establishing this new company is a critical foundation for us and key to building an end-to-end digital asset offering,” said Jez Mohideen, the unit’s newly appointed CEO, in the statement. “The company will have top talent and business agility along with access to Nomura’s global network to build a top tier institutional digital asset franchise.

In a separate announcement, Nomura announced that it launched bitcoin OTC derivatives with bitcoin non-deliverable forwards and non-deliverable options for clients in Asia out of Singapore. The bank also has the capability to offer bitcoin futures and options trading, with such trades executed this week on the CME with Cumberland DRW, marking the first digital asset trades for Nomura.

“Digital assets have come a long way in the past several years, with infrastructure growing to keep pace with investor interest. Working with institutional-grade counterparties will allow us to scale into the increasing demand from our clients. Options enable investors to trade volatility directly and protect against downside risks in the crypto market,” said Rig Karkhanis, head of Global Markets for Asia ex-Japan at Nomura, in a statement.

Paul Kremsky, head of Relationship Management at Cumberland DRW, said in a statement: “Digital assets have grown from a niche industry into a $1.5 trillion asset class, but many investors still don’t have an avenue to get exposure to the space. We are excited to work with Nomura and provide access to this emerging asset class.”

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