Nomura Holdings plans to break a profit at its crypto unit within two years as the spectacular failure of Sam Bankman-Fried’s FTX exchange spurs demand for safer counterparties in the digital-asset sector.
The unit, Laser Digital, will leverage the backing of the Tokyo-based investment bank to win over institutional investors and plans to add 50 employees by March, its Chief Executive Officer Jez Mohideen said. It’s now easier to hire talent and acquire assets at a lower valuation, he said, adding that the firm has tightened risk management.
"The latest events in the crypto market will provide an opportunity for us as it will drive institutional investors to digital-asset firms backed by traditional finance houses,” Mohideen said in an interview. "We’ve run all the stress tests and assuming worse-case scenarios in terms of market volume, price volatility, we believe we can turn profitable within two years.”