Nomura’s Bold Move into Cryptocurrency
The largest investment bank in Japan, Nomura, is gearing up to dive headfirst into the world of digital assets. Rumor has it they’ve got a new subsidiary in the works aimed at helping institutional clients invest in cryptocurrencies and non-fungible tokens (NFTs). And let’s be real, if anyone can figure out how to ride the wild waves of crypto, it’s a bank with over half a trillion dollars in assets. Yes, you heard that right – $569 billion to be exact, as of Q1 2022!
What’s Brewing at Nomura?
According to the Financial Times, folks in the know suggest this new company won’t be just any crypto side hustle. It’s set to house a slew of services all under one roof, featuring a team of about 100 people by 2023. Essentially, it’s like the Avengers of the crypto world, coming together to tackle the complexities of digital finance.
Setting Up Shop
But hold your horses! This isn’t just another Tokyo venture. Rumor has it that Nomura’s new office will be established abroad. Initially, it’s expected to be run by Nomura’s own transplants while they scout out the best talent in the Web3 and blockchain arena. Heading the charge will be none other than Jez Mohideen, the current head of wholesale digital operations. So, basically, they’re plucking the best and brightest from their own ranks to create a dream team.
Feeling the Pressure
Why the sudden rush into crypto? Well, Nomura appears to be feeling some serious pressure to get cozy with the rapidly evolving digital asset landscape. One executive noted to the Financial Times, “If we don’t do this, then it’s going to be more difficult down the line to be competitive.” And let’s face it, if they don’t keep pace, they might find themselves as relevant as a flip phone in 2023.
Market Context: The Good, The Bad, and The Writedowns
Interestingly, this announcement follows a recent report from Bloomberg about Nomura beginning to offer Bitcoin (BTC) derivatives trading to Asian clients. Just what they need, right? A way to tap into the latest crypto craze while also juggling the fear of heavy losses from recent sell-offs. As if that weren’t enough, Nomura is also contending with a hefty $345 million writedown related to a transaction from the 2008 financial crisis. Doesn’t make for the happiest of balance sheets! A writedown, after all, is essentially a bank’s way of saying, “Oops, that wasn’t as valuable as we thought.” Talk about adding fuel to the fire.
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