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Nomura Starts Trading Crypto Derivatives to Meet Growing Demands

Tyler Irvin

Summary: Nomura, a Japanese financial holding company, has begun to offer Bitcoin over-the-counter (OTC) derivatives to clients, in response to the growing demand from institutional investors and private clients, according to a Reuters report Friday.  Nomura launched this feature offering cryptocurrency derivatives with Bitcoin non-deliverable forwards and non-deliverable options for clients in Asia out of Singapore.  ...

Nomura, a Japanese financial holding company, has begun to offer Bitcoin over-the-counter (OTC) derivatives to clients, in response to the growing demand from institutional investors and private clients, according to a Reuters report Friday. 

Nomura launched this feature offering cryptocurrency derivatives with Bitcoin non-deliverable forwards and non-deliverable options for clients in Asia out of Singapore. 

According to Nomura’s head of markets Rig Karkhanis, the trades executed on the CME by crypto asset trading firm Cumberland DRW were Nomura’s first digital asset trades. 

Nomura joins many other global investment banks offering or looking to offer clients more crypto related services to meet the demand of their clients asking for exactly that. This has been a booming sector that investors are looking to get more of a grasp on before it passes them up. 

However, this announcement comes as Bitcoin and Ethereum, the two leading cryptocurrencies by price and market cap, are on track for their worst week in 2022. To make matters worse, a stablecoin by the name of TerraUSD (UST) went from $1 to a mere $0.1543. The native token to Terra, LUNA, had a similar crash in terms of percentage, but a much worse drop-off in terms of dollars. It went from $87 on May 4 to $0.000099 at the time of writing, according to Bitpush Terminal data. 

While we have seen drops like this occur with meme coins, this was certainly unprecedented in terms of a legit project. 

Nomura was one of the first banks to explore custody of crypto assets in June 2020. In the same year, the Nomura Research Institute, an economic consulting arm of the bank, launched a crypto-asset index to track the Japanese cryptocurrency market. 

Lastly, Nomura Holdings (Nomura) and Nomura Real Estate Holdings (Nomura Real Estate) announced Friday, they signed a memorandum of understanding to begin discussions on forming a partnership to establish a real asset fund management company. 

Author: Tyler Irvin

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