Friday, December 9, 2022

Japan’s Nomura Bank Formed A Crypto-Focused Unit For Institutions

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Japan’s Nomura bank formed a crypto-focused unit for all institutions and considered its expansion as a reasonable move in times of high inflation so let’s read more today in our latest cryptocurrency news.

Days after launching its first-ever OTC BTC derivatives to the institutional clients, Japan’s Nomura bank doubled down on crypto services and launched a new digital asset unit for the institutional investors. The financial giant will house a variety of digital asset companies underneath its subsidiary which will recruit 100 employees by the end of next year as per the sources in the Financial Times. The coverage revealed that Nomura’s executives will lead the new branch and most of the employees will be recruited outside and fifteen current company staff will get transferred to the unit.

The chief digital officer for the bank’s wholesale business, Jez Mohideen will lead the crypto unit. One of the executives at the bank expressed urgency to the latest entry into the crypto-based service tailored for the institutions and added that the inflationary environment was a key factor in speeding up the company’s developments:

“Any asset class at the moment that has discounted cash flow is all under huge stress in an inflationary environment. But I think…many managers will be looking and thinking about potentially allocating towards blockchain technology and blockchain opportunities.”

nomura bank

Nomura made headlines by making OTC BTC futures and options available for institutional clients with the rest of the market being in a total bloodbath. As it was best exemplified in Terra’s collapse with LUNA which dropped to $0 in a few days, the recent wild fluctuations didn’t stop the giant’s crypto ambition and the executive Rig Karkhanis considered the move a good response to meet the increasing demand from clients. The bank expected the crypto sector to mature in time and to become better regulated which will make it more attractive for the institutional clients.

As recently reported, over the past few years, countries around the world showed interest in central bank digital currencies but now, the Bank of Japan announced a new approach to the Digital Yen and stated that this is a developmental trajectory that will follow the steps of Sweden. The final decision will be made by 2026 as the BOJ Said.

The Bank of Japan considers the framework of the CBDC tied to the overall settlement system and while the experimental phases are ongoing, the central bank thinks that it is one of the main issues to ensure compatibility with the financail infrastrcuture and other CBDCs. Kazushige Kamiyama the head of the BOJ said that Sweden’s staged expansion and experimentation are much more suitable than China’s approach. China started a large-scale pilot testing of its digital currency during the Bejing Winter Olympics and aimed to push the broader adoption of the digital yuan

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