SMBC Nikko Establishes Dedicated DeFi Unit, Positioning for 2026 Regulatory Shift in Japan
SMBC Nikko Securities has established a "DeFi Technology Department" to capitalize on Japan’s evolving digital asset landscape. The new division is tasked with spearheading the brokerage’s expansion into decentralized finance (DeFi) and crypto asset services, anticipating major legislative overhauls expected later this year.
The creation of the department comes as the Japanese Diet prepares to deliberate revisions to the Financial Instruments and Exchange Act. These proposed changes are expected to reclassify crypto assets as a new category of securities, effectively greenlighting banking group subsidiaries to hold, issue, and trade digital assets for investment purposes. Additionally, outlined tax reforms now expected to come into effect in 2028—specifically a shift toward separate taxation for certain crypto assets—are projected to significantly improve the liquidity and attractiveness of the domestic market.
"SMBC Nikko aims to evolve alongside technology and provide new added value to our clients," the firm stated, emphasizing the need to develop safe, reliable access to the market with advanced user interfaces.
Strategic Mandate
Led by President & CEO Shuji Yoshioka, the firm’s new department will focus on three core pillars:
- Infrastructure Development: Building business models and systems utilizing crypto assets and stablecoins.
- Regulatory Engagement: Formulating policy proposals to help shape the governance of the sector.
- Operational Execution: Managing the issuance and trading of digital assets.
From R&D to Implementation
This move formalizes efforts that began with the establishment of the Nikko Open Innovation Lab in 2020. SMBC Nikko has steadily built its capabilities in the sector, becoming a member of the Japan Cryptoasset Business Association in 2021 and making a Limited Partner (LP) investment in crypto-native venture firm Hashed in June 2025.
Looking forward, the firm identified the tokenization of "Real World Assets" (RWA)—the consolidation of traditional capital markets onto blockchain infrastructure—as a critical growth area. By launching this dedicated department, SMBC Nikko signals its intent to transition from an experimental participant to a primary "gatekeeper" of the next-generation financial market.
Norbert Gehrke
