Japanese financial services giant Nomura has Bitcoin-Introduced derivatives for its institutional clients. The first trades were executed by Cumberland DRW on behalf of Nomura on the CME.
Over-the-counter BTC futures and options
Nomura’s over-the-counter Bitcoin futures and options will be available to institutional clients. They could not be delivered and had to be paid in cash, according to media reports.
Speaking of the partnership with Cumberland DRW, Rig Karkhanis, Nomura’s Head of Markets, Asia ex-Japan (AEJ), said in a statement: “Working with institutional counterparties will allow us to meet increasing demand from our clients.”
Derivatives during the collapse of digital assets
Although the crypto markets have been in a bearish mode for the past few months, institutional and retail investor demand for such services has grown, forcing global investment banks to expand into the industry.
The current meltdown that left the crypto market with a $300 billion setback in just four days is likely to spur calls for more regulation.
“We expect the sector to mature and become more regulated over time, making it more attractive to institutional investors,” said Tim Albers, head of forex Structuring, AEJ, Nomura.
At a time when Bitcoin has since all-time high Having lost more than half of its value from $69,000 in November 2021, it could be just the right time to launch more BTC-related derivatives, the executive said.
“Recently there has been significant volatility. Once the dust settles, valuations will become more attractive to institutional clients. We are very excited to get this off the ground as the launch marks the beginning of our journey into the global market business space,” said Albers.
Nomura as the first crypto custodian
Nomura’s interest in crypto dates back to May 2018 when it became the first crypto custodian through a new company called Komainu. It has partnered with crypto security and infrastructure solutions provider Ledger and bitcoin-focused investment manager Global Advisors.
Storage and security concerns have been a major bottleneck for large-scale investments in cryptocurrencies by investment bankers. The move was expected to attract institutional investors to digital assets.
In July 2020, it launched a custody service for traditional investors through Komainu in partnership with Ledger and investment firm CoinShares. Komainu is the first regulated digital asset custody solution built by institutions for institutions, the company claimed.
Featured image courtesy of GlobalCapital
Source: Crypto News Deutsch