Nomura Scales Back Crypto Risk at Laser Digital Unit

• Nomura cut crypto risk at Laser Digital after Q3 losses, tightening exposure to manage short-term volatility.
• Despite reductions, Nomura reaffirmed its medium- to long-term commitment to digital asset businesses.
• Laser Digital’s U.S. trust bank application signals expansion plans even as risk controls increase.

Nomura, Japan’s largest wealth manager, has reduced its cryptocurrency risk exposure following losses recorded in the third quarter, according to comments from company executives. The move affects its Europe-based digital asset subsidiary, Laser Digital, and reflects a broader effort to manage short-term volatility amid recent turbulence in crypto markets.

Nomura oversees approximately ¥153 trillion in client assets and controls about 15% of Japan’s domestic wealth management market. Despite its scale and long-standing interest in digital assets, the firm acknowledged that recent market conditions prompted tighter controls on crypto-related positions.

Nomura Crypto Risk Reduction Targets Laser Digital

The decision centers on Laser Digital, Nomura’s cryptocurrency trading arm launched in Switzerland in September 2022. The subsidiary manages the group’s crypto trading operations and has been a key pillar of Nomura’s digital asset strategy.

Hiroyuki Moriuchi, Nomura’s chief financial officer, said the firm has “tightened its management of positions and risk exposure” to limit the impact of short-term profit swings. He confirmed that the adjustments followed unspecified losses during the third quarter.

The remarks were reported by Bloomberg Japan, which cited Moriuchi as stating that the changes do not signal a retreat from the sector.

Long-Term Digital Asset Strategy Remains Intact

While implementing near-term cutbacks, Nomura said its broader digital asset ambitions remain unchanged. Moriuchi stated that the company plans to expand its crypto-related business over the medium- to long-term, even as it reduces its immediate exposure.

Japanese financial firms have continued to explore crypto initiatives despite market-wide price declines. However, Nomura’s move shows that even firms with a historically constructive stance on digital assets are responding to recent volatility with more cautious risk management.

U.S. Expansion Plans Continue Despite Cutbacks

The risk reduction comes shortly after Laser Digital applied for a national trust bank charter in the United States. According to a Financial Times report, the charter would allow the subsidiary to operate across the U.S. and provide crypto custody and spot trading services to firms and individual clients.

Nomura originally positioned Laser Digital to focus on cryptocurrency trading and venture capital investments linked to digital assets. In late 2022, company officials said they expected the unit to reach profitability by 2024. Last year, Nomura also joined five other major Japanese wealth managers in signaling interest in launching crypto-focused investment funds for domestic investors.

Related: Nomura’s Laser Digital Secures Crypto License in Abu Dhabi