Nomura Rolls Out Over The Counter Bitcoin Derivatives Amid The Market Bloodbath 

  • Amid the high market volatility, the Japanese financial services company Nomura has unboxed new Bitcoin derivatives services. 
  • Despite a downtrend in the sector, the demand from institutional and private investors for such services is growing. 
  • They expect the sector to mature with time and to become more regulated, making it more attractive for an institutional investor. 

Nomura, the Japanese financial services company, has rolled out Bitcoin derivatives for its institutional clients. 

Nomura’s over-the-counter (OTC) bitcoin futures and options would be available for institutional clients. Reportedly, they will be non-derivable and have to be settled in cash. The initial trades were executed by Cumberland DRW for Nomura on the CME.

According to Nomura’s head of markets, Asia ex-Japan (AEJ), Rig Karkhanis, who talked about the collaboration with Cumberland DRW, working with institutional-grade counterparties will allow them to scale into the increasing demand from their clients. 

Demands For Such Services Increases Despite Bearish Trends

Even though the overall crypto the industry has been witnessing bearish trends of late, but the demands from the institutional and private investors for such services are witnessing growth. Hence, prompting global investment banks to expand into the sector.

And the recent breakdown of the crypto market that resulted in a $300 billion setback within a week can roughly bring on greater regulations. 

According to Tim Albers, the head of Forex trading, AEJ, Nomura, they expect the sector to mature with time to become more regulated, which makes it more attractive for an institutional investor. 

And that there has been considerable volatility lately. Once the dust settles, valuations would become more attractive for the institutional clients. They are quite excited to get this off the ground as the launch signifies the start of their journey into the space for the global markets business. 

Nomura’s inclination towards crypto started to reflect in 2018 when it emerged as the first crypto custody bank via a new venture called Komaino. It also collaborated with bitcoin-specialist investment manager Global Advisors and crypto security and infrastructure solution provider Ledger.

Furthermore, it also rolled out a custodial service for traditional investors through Komainu in 2020 and partnered with Ledger and CoinShares.

The company also claims that Komainu is the first regulated virtual assets custody solution developed by institutions for institutions. 

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