Nomuraโs Cryptocurrency Unit Faces Challenges in Profitability
According to banking giant Nomura Holdings Inc., its digitalย currency unit, Laser Digital, may take longer than atย theย beginning anticipated to become profitable due to the recent downturn in the cryptocurrency market. Laser Digital was launched by Nomura in September 2022 with the goal of achieving profitability by 2024. Nonetheless, the unit has been impacted by the volatility and regulatory changes in the cryptocurrency sector. Laser Digitalโs CEO, Jez Mohideen, acknowledged these challenges in an interview with Bloomberg, stating that factors such as declining volumes and shifting regulatory requirements have caused delays in their profitability journey.
The Impact of Market Turmoil on Laser Digital
Shortly after the launch of Laser Digital, the cryptocurrency market experienced a wholeย lotย of correction following the collapse of FTX. This market downturn resulted in a liquidity crunch and increased regulatory scrutiny, eroding over $2 trillion from the digitalย currency market. These adverse market conditions have added further obstacles to Laser Digitalโs path to profitability.
Nomuraโs Optimism in the Cryptocurrency Space
Regardlessย of the challenges, Mohideen remains optimistic about futureย ofย the digital assets. He believes that the entry of well- established financial giants like BlackRock Inc. and the increasing interest from institutional investors will bring positive changes to the cryptocurrency industry. BlackRock has recently filed a request to introduce exchange-traded funds (ETFs) for spot Bitcoin, indicating growing institutional adoption.
Expanding Operations and Building a Strong Team
Alongย with its current operations, Laser Digital has obtained a license to operate in Dubai, enabling it to expand its business segments. The company intendsย to introduce trading, asset management, and deal financialย resources services in the emirate. Laser Digital has already recruited 70 professionals and intendsย to hire anย extra 20 individuals over time. Furthermore, they are establishing an office in Tokyo toย facilitate their worldwide trading activities, with intendsย to hire 4 to 6 personnel for the Tokyo office.
Althoughย while Nomuraโs Laser Digital may face delays in achieving profitability due to volatility of the market and changing regulations, the company remains committed to navigating these challenges. The entry of major financial institutions and the growing interest from institutional investors indicate a promising future for digitalย currencies. By expanding their operations and building a strong team, Laser Digital intendsย to position itself as a key player in the cryptocurrency space. Regardlessย of theย capacity delays, the long-term probable of digitalย currencies and the opportunities they offer cannot be ignored.
Gapster Innes emerges as a visionary adeptly blending the roles of crypto analyst, dedicated researcher, and editorial maestro into an intricate tapestry of insight. Amidst the dynamic world of digital currencies, Gapster’s insights resonate like finely tuned harmonies, captivating curious minds from various corners. His talent for unraveling intricate threads of crypto intricacies melds seamlessly with his editorial finesse, transforming complexity into an eloquent symphony of comprehension.
