<![CDATA[<figure class="image"><img src="https://cimg.co/news/124466/328657/nomura.jpg" srcset="https://cimg.co/news/124466/328657/responsive-images/nomura___media_library_original_480_320.jpg 480w, https://cimg.co/news/124466/328657/responsive-images/nomura___media_library_original_300_200.jpg 300w" width="480" class="content-img" alt=""><figcaption>Source: Nomura</figcaption></figure>Laser Digital, the digital asset subsidiary of the Japanese financial services giant <a href="https://cryptonews.com/tags/nomura/">Nomura</a>, might take a longer time to turn profitable than expected, as the company is still grappling to recover from the sector&rsquo;s turmoil.Laser Digital had previously forecasted to make profits by 2024. However, in an interview with <a href="https://www.bloomberg.com/news/articles/2023-09-08/nomura-crypto-chief-warns-market-rout-may-delay-unit-s-profit#xj4y7vzkg">Bloomberg</a>, the company&rsquo;s CEO Jez Mohideen noted that the firm has been hit by the crypto industry&rsquo;s turmoil, which would delay its profit making growth.<blockquote>&ldquo;Our profitability journey may take a bit longer than we forecast a year ago. Volumes have come down, activity has shrunk, regulators&rsquo; needs are changing - all these are leading to some delays in our overall journey including profitability.&rdquo;</blockquote>In December 2022, Mohideen <a href="https://www.bloomberg.com/news/articles/2022-12-07/nomura-s-crypto-arm-seeks-profit-in-two-years-in-shakeout-after-ftx-crisis">noted</a> that Laser Digital would break a profit within two years, as there is a demand for safer alternatives in the crypto sector, following the <a href="https://cryptonews.com/news/crypto-prices-crash-as-ftx-crypto-exchange-collapses-what-we-know-so-far.htm">spectacular failure</a> of Sam Bankman-Fried&rsquo;s FTX exchange.The crash, which wiped out $2 trillion of crypto market value, took a toll on the entire sector, causing repercussions to numerous exchanges and crypto-centric firms.&ldquo;We&rsquo;ve run all the stress tests and assuming worst-case scenarios in terms of market volume, price volatility, we believe we can turn profitable within two years,&rdquo; he said at the time.The company also planned to add more workforce by this March, stating that it's easier to hire talent and acquire assets at a lower valuation. Laser Digital has hired 70 staff so far and plans to add up to 20 more over time, Mohideen noted.<blockquote>&ldquo;The crypto subsidiary of Nomura is setting up an office in Tokyo to offer support to its global trading business. The company will hire 4 to 6 people in its Tokyo office.&rdquo;</blockquote>He further added that the entry of more institutions and institutional projects coming into the crypto sector despite the market rout gives him &ldquo;confidence.&rdquo; Investment management firms like BlackRock, and other financial institutions have recently entered the market bull run.&ldquo;The future is brighter but it may take longer,&rdquo; he added.
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Nomura’s Crypto Arm Might Take Longer Time to Turn Profitable After Market Rout: CEO

Cryptonews.com

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