Japan’s biggest wealth manager reduces crypto positions after Q3 losses

Nomura, a Japanese brokerage with around $153 trillion in client assets, says it has “reduced its positions in cryptocurrencies” after its crypto arm suffered unspecified losses in the third quarter.

The firm confirmed that it is reducing risk at its Europe-based crypto subsidiary Laser Digital, which handles its cryptocurrency trading operations. The comments came from Nomura’s chief financial officer Hiroyuki Moriuchi, according to Bloomberg Japan.

Nomura’s “commitment to digital asset-related businesses remains unchanged,” Moriuchi said. He added that the firm hopes to expand its crypto-related business operations “in the medium to long term.”

Japanese firms have shown a willingness to buck market trends and invest in Bitcoin and crypto-related business regardless of the choppy market conditions. But even the most bullish of the country’s crypto-keen companies appear not to be impervious to crypto prices’ recent dramatic falls.

Reducing risk exposure

Nomura is Japan’s biggest wealth manager, with around $153 trillion in client assets and control of around 15% of the domestic market.

“We have tightened our management of positions, as well as risk exposure [to curb short-term volatility in profit],” Moriuchi said.

The comments come shortly after Laser Digital lodged an application to operate as a federally chartered bank in the United States.

Laser Digital has applied for a national trust bank charter, which would allow it to operate throughout the US, Financial Times reported last week.

Nomura wants its subsidiary to offer US firms and residents a range of crypto custody and spot trading services.

Nomura launched Laser Digital in Switzerland on September 21, 2022, stating the new firm would to focus on “digital assets, including cryptocurrency trading and venture capital.”

In December 2022, officials said they expected the subsidiary to be turning a profit by 2024.

Last year, Nomura and five other major Japanese wealth management players, indicated a willingness to launch crypto funds for domestic investors.