Key Notes

• CEO Akihiko Ogino says Japanese authorities should make crypto ETFs available in Japan.
• Several large firms, including Mitsubishi UFJ, Sumitomo Mitsui, and Nomura, back the push for crypto ETFs.
• Daiwa’s prospects in China remain uncertain, with plans to focus on profitability by 2026.

The chief executive officer of Daiwa Securities, Akihiko Ogino, has called on Japanese authorities to allow crypto exchange-traded funds to be launched in the country. Daiwa Securities, along with other companies, is advocating for approval to make crypto ETFs available in Japan.

The CEO made a comment about the approval of crypto ETF in a report published by Bloomberg, in which he stated that Japan should allow exchange-traded investment trusts backed by cryptocurrencies to debut in the country. The push for a crypto ETF in Japan is not just by Daiwa, as other top firms such as Mitsubishi UFJ, Sumitomo Mitsui, and Nomura Securities have all supported a proposal urging Japan to prioritize Bitcoin and Ethereum for crypto ETFs.

However, the regulatory constraints and lingering negative perceptions of crypto, influenced by past incidents like Mt. Gox and DMM, have led many to believe that Japan may find it hard to adopt crypto-backed ETFs.

Challenges in China and Uncertain Profitability

Ogino also addressed Daiwa Securities’ operations in China, noting that profitability in the region remains uncertain.The CEO noted that the chance that the company will profit in the new year is a bit questionable, which counters the firm’s earlier optimism about turning around its joint venture brokerage as early as next year. He explained that the Chinese market’s performance over the past year has fallen short of expectations, slowing progress. The CEO said:

“It’s a bit questionable whether we will be able to make a profit in 2025. The reality is that the pace of the Chinese market over the past year hasn’t been as good as expected.”

Official data revealed that the combined revenue of China’s securities firms dropped 9% to 203.3 billion yuan ($27.9 billion) in the first half of the year compared to the same period last year. Some firms have had to cut staff to maintain operations. BNP Paribas and Morgan Stanley have cut staff amid declining deals.

Ogino noted that Daiwa Securities will try to do everything it can to achieve profit in 2026, which could lead to securing more partnerships with investment funds and attracting more businesses.

Daiwa’s Growth Plans Amid Japan’s Economic Shifts

In addition to advocating for crypto ETFs, Ogino shared insights into Japan’s economic trajectory. He noted that the country’s economy seems poised for further monetary tightening by the central bank as corporate profits start to grow alongside mild inflation. He believes that Bank of Japan will increase its policy interest rate in January to 0.5% from the current 0.25% and increase it further to 0.75% by the end of 2025.

Daiwa plans to grow and train its workers to become skilled traders in yen rates. It is also planning to raise employees’ pay by around 5% or even more in April 2025, marking the fourth straight year of increase.