Nomuras Crypto Unit Unlikely to Turn Profitable by 2024, Says Firm

Nomuras Crypto Unit Unlikely to Turn Profitable by 2024, Says Firm

Nomura’s Cryptocurrency Unit Faces Challenges in Profitability

According to banking giant Nomura Holdings Inc., its digital currency unit, Laser Digital, may take longer than at the 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 Digital’s 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.

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The Impact of Market Turmoil on Laser Digital

Shortly after the launch of Laser Digital, the cryptocurrency market experienced a whole lot 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 digital currency market. These adverse market conditions have added further obstacles to Laser Digital’s path to profitability.

Nomura’s Optimism in the Cryptocurrency Space

Regardless of the challenges, Mohideen remains optimistic about future of 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.

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Expanding Operations and Building a Strong Team

Along with its current operations, Laser Digital has obtained a license to operate in Dubai, enabling it to expand its business segments. The company intends to introduce trading, asset management, and deal financial resources services in the emirate. Laser Digital has already recruited 70 professionals and intends to hire an extra 20 individuals over time. Furthermore, they are establishing an office in Tokyo to facilitate their worldwide trading activities, with intends to hire 4 to 6 personnel for the Tokyo office.

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Although while Nomura’s 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 digital currencies. By expanding their operations and building a strong team, Laser Digital intends to position itself as a key player in the cryptocurrency space. Regardless of the  capacity delays, the long-term probable of digital currencies and the opportunities they offer cannot be ignored.

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