Nomura’s subsidiary, Laser Digital Holdings, has indicated to Cointelegraph that they are currently engaging in discussions with Japan’s Financial Services Agency (FSA) regarding an application for a crypto trading license targeted at institutional investors in Japan.

A spokesperson confirmed that they are in the pre-consultation phase and that the timeline for a formal application is yet to be determined, contingent on the result of talks with the FSA.

If their application is approved, Laser Digital plans to offer broker-dealer services catering to both traditional financial institutions and crypto trading platforms within Japan. Nomura is a key player as part of the Nomura Group, recognized as Japan’s premier investment banking and brokerage firm.

Institutional Interest in Crypto in Japan

This strategic initiative is part of a larger trend among institutions entering the Japanese crypto landscape.

Just this week, Daiwa Securities Group, a major brokerage in Japan, introduced a crypto lending service that permits clients to utilize Bitcoin (BTC) and Ether (ETH) as collateral for loans in Japanese yen.

Both Laser Digital and Daiwa’s efforts are seen as responses to the increasing interest in cryptocurrency investments within the region.

In a June survey by Nomura and Laser Digital, 54% of investment managers—including family offices, corporations, and institutional entities—expressed intentions to invest in cryptocurrencies within the forthcoming three years.

Regulatory Developments and Crypto Adoption

On top of rising interest from institutions, Japan’s regulatory outlook on cryptocurrency is becoming notably more accommodating.

Efforts are underway to update Japan’s crypto regulations to align them more closely with those governing traditional securities. Additionally, plans are in motion to lower tax obligations concerning cryptocurrencies. In August, regulators discreetly authorized Japan’s first stablecoin linked to the Japanese yen.

This regulatory transition has led to a significant uptick in crypto adoption in Japan. A Chainalysis report from September 24 noted that Japan’s crypto market saw a 120% year-on-year increase in on-chain value received leading up to June, marking it as the fastest-growing market in the Asia Pacific region.

Previously, Chengyi Ong, the head of APAC policy at Chainalysis, mentioned that activity in Japan’s crypto market exhibited patterns similar to global trends, such as increased trading volume following the US presidential election.