According to Jez Mohideen, co-founder and CEO of Laser Digital, traditional financial firms entering the crypto space will help to regulate the industry.
Although the winds of crypto winter continue to blow, venture capital firms continue to pour money into cryptocurrencies. Indeed, recent events influenced by the bear market, such as the FTX collapse, may bring “further trust into the ecosystem,” according to Jez Mohideen, co-founder and CEO of Laser Digital, the recently launched digital assets arm of Asian conglomerate Nomura Holdings.
“More traditional players are entering the market, which will aid in the regulation of the sector. This includes players who understand regulatory requirements as well as the significance of client aggregation, stability, and execution “Mohideen, a long-time venture capitalist and former director at Barclays as well as a partner at the hedge fund Brevan Howard, elaborated.
Among the firms working on decentralised finances (DeFi) structured products and fixed income solutions in Laser Digital Ventures’ current portfolio are the crypto exchange Bullish, the decentralised exchange protocol Orderly Network, and the hybrid custodian for institutional investor Komainu. He stated that the company intends to invest in nearly 20 projects by 2023.
Laser Digital’s primary funding targets include startups that provide solutions for institutional investors, a market that has been steadily growing in recent years. According to a Coinbase survey, 62% of institutional investors have increased their crypto allocations in the last year.
“The lack of adequate infrastructural solutions has created a significant bottleneck for crypto-keen institutions — we want to assist in resolving this bottleneck issue,” the executive stated. Web3 is particularly excited to work on infrastructure solutions that will accelerate institutional adoption of cryptocurrency, such as DeFi.
Solving real problems will be critical for crypto firms seeking to raise capital in the midst of the crypto price slump. The investment thesis of Laser Digital is centred on projects that are “innovative and have clear metrics for how they will get there,” according to Mohideen. He went on to say:
“Web3 and Metaverse platforms stand to be a major area for growth in the next few years. Also, Web2 services, like social media, streaming entertainment and gaming stand to see huge upside if they embrace Web3 technology and governance.”
Nomura Holdings, one of Japan’s largest banks, reported $470 billion in assets under management by the end of 2022. Last year, the company also announced plans to launch a crypto subsidiary focused on crypto and nonfungible token investments.
