Investment Bank Nomura Starts Trading Crypto Derivatives amid Market Collapse

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by Mayowa Adebajo · 2 min read
Investment Bank Nomura Starts Trading Crypto Derivatives amid Market Collapse
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Despite giving in to customers’ demands by starting to trade crypto, Nomura is consciously staying away from spot markets.

Traditional financial institutions are gradually hopping on the crypto train, and Japan-based investment bank Nomura may just be the latest aboard. Towing the same path as the likes of JPMorgan and Goldman Sachs, Nomura has also started offering Bitcoin (BTC) over-the-counter derivatives to its clients.

But it might be worthy to quickly note that Goldman does more than just trading crypto futures. As part of its own offerings, Goldman also announced that clients may use bitcoin as collateral for dollar loans they will like to take out.

Nomura Playing Safe Despite High Demand for Crypto Services

There’s no denying the fact that there’s an insatiable hunger for crypto services amongst institutional investors and private clients as well. To this effect, many investment banks such as Nomura, have been looking for ways to bring inclusiveness to their customers by offering them an array of crypto services.

While, it is one thing for digital assets to grow in popularity, getting enough exposure, however, is an entirely different ball game. Therefore, bringing crypto exposure to investors, who wouldn’t have otherwise been able to get it, has been the major focus for most investment banks.

However, despite now accepting customers’ demands by starting to trade crypto, Nomura is yet, consciously staying away from spot markets.

According to a statement by the Head of Global Markets at the bank, Rig Karkhanis, this is the first time Nomura will be trading digital assets. Karkhanis also added:

“We also have the capability to offer bitcoin futures and options trading, with such trades executed this week on the CME with Cumberland DRW.”

As All Crypto Markets Collapse…

Meanwhile, it’s been one hell of a red week for the crypto market in general. It had all begun when one of the world’s largest stablecoin LUNA, collapsed. In view of this, holders of much-riskier assets began selling them off for the fear of the unknown. And this was just enough to send the entire market crumbling.

Just this week alone, the entire crypto market capitalization has lost nearly 30%. But Karkhanis remains optimistic regardless. He said:

“Options enable investors to trade volatility directly and protect against downside risk.”

For the first time in 16 months, Thursday saw Bitcoin reaching as low as $25,400.

Cryptocurrency news, News
Mayowa Adebajo

Mayowa is a crypto enthusiast/writer whose conversational character is quite evident in his style of writing. He strongly believes in the potential of digital assets and takes every opportunity to reiterate this. He's a reader, a researcher, an astute speaker, and also a budding entrepreneur. Away from crypto however, Mayowa's fancied distractions include soccer or discussing world politics.

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