Nomura subsidiary cuts crypto exposure after Q3 loss… “Medium- to long-term strategy remains intact”

Suehyeon Lee

Summary

Nomura-backed subsidiary Laser Digital reportedly reduced its crypto exposure following a third-quarter loss.
Nomura’s CFO said the firm is cutting crypto-related positions and strengthening risk management, while maintaining its medium- to long-term commitment to the digital-asset business.
The market largely interprets the move as a position adjustment to respond to short-term volatility, not an exit from the crypto business.

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A crypto asset (cryptocurrency) subsidiary backed by Japanese securities giant Nomura has been shown to have reduced related positions amid heightened market volatility.

According to DL News on the 1st (local time), Nomura’s Europe-based crypto subsidiary Laser Digital cut its crypto exposure after posting a third-quarter loss.

Hiroyuki Moriuchi, Nomura’s chief financial officer (CFO), stressed that while the firm is “reducing some crypto-related positions and strengthening risk management,” “Nomura’s medium- to long-term commitment to the digital-asset business remains unchanged.” He added that he hopes to expand crypto-related businesses again from a medium- to long-term perspective going forward.

Nomura is one of Japan’s leading financial groups, managing approximately $153 trillion in client assets, and has been among the relatively more proactive Japanese firms in investing in bitcoin and crypto-related businesses. However, amid a recent sharp drop in crypto prices and a period of heightened volatility, observers say more conservative risk-management moves are also emerging in Japan.

The market largely views Nomura’s decision as closer to a position adjustment in response to short-term volatility than a withdrawal from the crypto business. The assessment is that while acknowledging medium- to long-term growth potential, the firm is paring back exposure and taking a breather during bouts of abrupt price swings.