Laser Digital Aims to Capture Institutional Market via Japan's Regulated Crypto Surge

Laser Digital, a subsidiary of Japan-based Nomura Group, is preparing to apply for a crypto trading license in Japan to serve institutional clients, signaling a strategic expansion into the country's rapidly growing digital asset market. The Switzerland-based unit is in pre-consultation talks with Japan's Financial Services Agency (FSA), according to CEO Jez Mohideen, who emphasized the group's confidence in Japan's evolving digital-asset ecosystem . The move aligns with broader trends in Japan, where crypto transaction values have surged, doubling to ¥33.7 trillion ($230 billion) in the first seven months of 2025, driven by regulatory reforms and supportive policies .

Japan's crypto market has outpaced regional peers, with a 120% year-on-year increase in on-chain value received between June 2024 and June 2025. This growth is attributed to measures such as tax cuts, new rules for crypto-focused funds, and the licensing of a yen-backed stablecoin issuer . The FSA's stringent regulatory framework, established after the 2017 Mt. Gox collapse, has created a balanced environment of compliance and innovation, attracting global institutions seeking to operate in Asia's most regulated crypto market . Laser Digital, which already holds a full crypto business license in Dubai and established a Japanese subsidiary in 2023, aims to leverage Nomura's domestic reputation to capture institutional market share .

The application, if approved, would enable Laser to provide broker-dealer services to traditional financial institutions and crypto exchanges in Japan. This includes facilitating transactions for institutional clients such as hedge funds and asset managers. Mohideen noted that the expansion reflects Laser's long-term optimism about Japan's digital-asset infrastructure, particularly as younger investors and institutional players increasingly allocate capital to crypto . The timing aligns with broader industry shifts, including Daiwa Securities' recent move to allow clients to use Bitcoin and Ether as collateral for yen loans, illustrating the convergence of traditional finance and digital assets .

However, Laser's path to profitability has not been without challenges. Nomura reported a quarterly loss in Europe earlier this year, partly attributed to Laser's underperformance. Mohideen initially projected breakeven within two years of the unit's 2022 launch but later revised expectations, acknowledging that market conditions and regulatory timelines might extend the timeline . Despite these hurdles, the firm's expansion into Japan underscores its commitment to capitalizing on a market where institutional demand is rising. Analysts suggest that Laser's entry could influence other global banks to follow suit, as Japan's regulatory clarity and growing adoption position it as a strategic hub for digital-asset services .

The FSA's licensing process remains a critical factor. While Laser has not yet submitted its formal application, the pre-consultation phase indicates progress toward compliance with Japan's rigorous standards. Regulators are tasked with balancing innovation with risk management, a challenge exacerbated by the global volatility in crypto markets. For Laser, success in Japan could reinforce its role as a pioneer among traditional financial firms entering the digital-asset space, while also reshaping the competitive landscape for institutional crypto services in Asia .