Three of Japan's largest securities firms, with a combined market capitalization of approximately $48 billion, are preparing to enter the cryptocurrency exchange business. This strategic pivot is led by Nomura Holdings, Japan's biggest securities provider, which manages around $673 billion in client assets. According to reports from the Nihon Keizai Shimbun, Nomura plans to launch crypto-trading services through its Swiss crypto subsidiary, Laser Digital, by the end of 2026.
The other two major firms named in the report are Daiwa Securities Group and SMBC Nikko Securities, both of which are strongly considering entry into the crypto exchange market. The firms are acting in anticipation of a surge in crypto investment demand, particularly when Tokyo lifts restrictions on crypto exchange-traded funds (ETFs). Japanese companies are reportedly refusing to let slumping Bitcoin prices derail their adoption plans, with many digital asset treasuries set to bolster their crypto holdings in 2026.
The move represents a significant transformation for Japan's financial sector, which has historically maintained cautious regulatory frameworks for crypto operations. The entry of these established institutions signals growing institutional confidence in digital asset infrastructure, following years of regulatory evolution and market maturation within Japan's cryptocurrency ecosystem.
However, the securities firms will need to navigate Japan's strict permit acquisition rules for exchanges. Thus far, only a handful of tech startups have managed to obtain these permits. Other securities giants like SBI Holdings and Monex Group have already used mergers and acquisitions to buy smaller crypto exchanges and rebrand them as subsidiaries.
Nomura's primary focus is reportedly the Japanese market, meaning it may have to either apply for an operating permit or consider a takeover bid for a permit-holding exchange. The company will seek a Japanese business license for Laser Digital in the coming months. Meanwhile, SMBC Nikko has launched a decentralized finance (DeFi) department as it explores its options. The firms will primarily target corporate clients initially.
This institutional push is being encouraged by Japanese regulators' attempts to deregulate the tightly policed crypto market. The Financial Services Agency's (FSA) proposed amendments to the Financial Instruments and Exchange Act are accelerating the full-scale entry of traditional financial institutions. The regulator wants to reclassify Bitcoin and several high-cap coins as investment products rather than payment instruments, which is their current classification under Japanese law.
Late last month, Nomura stated that 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. In November, Nomura, Daiwa, and four other financial firms expressed interest in launching crypto funds for domestic investors.
