Japan’s top securities firms prepare crypto exchange pivot

Three Japanese securities giants with a combined market cap of around $48 billion say they are considering launching crypto exchange businesses, with the largest of the trio aiming to provide crypto-trading services by the end of 2026.

Nomura Holdings, Japan’s biggest securities provider, which manages around $673 billion in clients’ assets, says it will launch its operations via its Swiss crypto subsidiary Laser Digital, Japanese newspaper Nihon Keizai Shimbun reported.

The other two firms named were Daiwa Securities Group and SMBC Nikko Securities, which Nihon Keizai Shimbun said are strongly considering entry into the crypto exchange market.

The firms say they’re acting in anticipation of crypto investment demand skyrocketing when Tokyo lifts restrictions on crypto exchange-traded funds, the newspaper reported.

Japanese firms are refusing to let slumping Bitcoin prices derail their crypto adoption plans, with scores of digital asset treasuries set to bolster their crypto holdings in 2026.

Deregulation hopes

The securities firms will have to navigate strict permit acquisition rules surrounding exchanges in Japan if their plans are to bear fruit. Thus far, only a handful of tech startups have managed to obtain these permits.

Two other securities giants, SBI Holdings and Monex Group, have already used the merger and acquisitions markets to buy up smaller crypto exchanges and rebrand them as SBI and Monex subsidiaries.

However, the newspaper reported Nomura’s primary focus is the Japanese market, which means it too may have to either apply for an operating permit or consider a takeover bid for a permit-holding exchange.

Nomura will reportedly seek a Japanese business license for Laser Digital in the months ahead, while SMBC Nikko has launched a decentralised finance department as it explores its options.

The firms will primarily target corporate clients, the newspaper reported.

DL News has approached all three firms for comment on the report.

Japanese regulators’ attempts to deregulate the tightly policed Japanese crypto market are sending encouraging signals to traditional finance providers, domestic media outlets report.

The Financial Services Agency’s proposed amendments to the Financial Instruments and Exchange Act are accelerating the full-scale entry of traditional financial institutions into the cryptocurrency market, Japanese media outlet CryptoTimes wrote on X.

The regulator wants to reclassify Bitcoin and several high-cap coins as investment products. Currently, Japanese law recognises them as payment instruments.

Late last month, Nomura said its “commitment to digital asset-related businesses remains unchanged,” despite “reducing its positions in cryptocurrencies” after Laser Digital suffered unspecified losses in the third quarter.

And in November, Nomura, Daiwa, and four other financial firms said they were keen to launch crypto funds for domestic investors.

Tim Alper is a News Correspondent at DL News. Got a tip? Email him at tdalper@dlnews.com.