Nomura’s Laser Digital Ventures in Infinity DeFi Lending Protocol

• Nomura’s crypto arm invests in DeFi lending protocol Infinity.
• The firms made no indication of the total amount of the investment.
• Nomura established Laser Digital amid a bear market.

The digital asset division of Nomura Holdings, Inc., known as Laser Digital, has invested in Infinity, a decentralized finance protocol for institutional lending and borrowing.

According to a joint statement released by the corporations, the Infinity protocol provides businesses with a foundation to base benchmark interest rates, lending, borrowing, and risk management in decentralized financial systems. However, on the other hand, the firms made no indication of the total investment amount.

Olivier Dang, Head of Ventures at Laser, said in a statement;

Infinity’s groundwork paves the way for institutional flows on-chain, new levels of rates, and risk innovation.

This investment sheds light on a developing trend that combines crypto-native DeFi infrastructure and TradFi solutions. According to experts, this allows the tokenization of assets such as credit and the creation of blockchain-based markets for institutional investors.

Financial institutions continue to exhibit interest in cryptocurrencies, as seen by Laser Digital’s move. This comes after the collapse of the cryptocurrency exchange, FTX. Notably, the collapse led to aggressive efforts in the United States that forced the sector to the margins of finance according to familiar sources.

Reportedly, Laser Digital was established by Nomura during a bear market in the cryptocurrency industry in 2018, with Steve Ashley, a former head of trading and investment banking, serving as its chairman.

In conclusion, the creation of this hybrid finance solution follows the recent Bank of International Settlements (BIS) recommendations for crypto exposures announced in December 2022.

This recommendation calls for the risk-weightings of tokenized assets to be regarded on par 1:1 with their analog equivalents. Accordingly, on January 1, 2025, the rules for international banks will go into force.

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