Nomura cuts cryptocurrency exposure after unit reports third-quarter losses

Japan’s largest investment bank and financial services group, Nomura, announced it would reduce its cryptocurrency investments following undisclosed third-quarter losses in its crypto division.

Regarding this decision, reports noted that the company stated it is cutting risk exposure at its digital asset subsidiary, Laser Digital, which oversees its crypto-related operations, citing information from Nomura’s chief financial officer, Hiroyuki Moriuchi. 

According to Moriuchi, “Nomura’s dedication to digital asset-related businesses remains the same.” He further explained that, “the firm aims to grow its crypto-related business operations over the medium to long term.” 

Nomura demonstrates its commitment to exploring the crypto industry 

Several Japanese firms have signaled a willingness to deviate from market trends by making strategic investments in Bitcoin and other crypto-related ventures, despite unpredictable market turns. Nonetheless, even with this strategy in place and optimism about the county’s crypto scene, most companies appear to be affected by the recent drastic drops in cryptocurrency prices.

While this is the case in Japanese crypto markets, Nomura has secured a position as the country’s biggest wealth manager, overseeing $153 trillion in client-entrusted assets and maintaining a 15% share of the local market.

Concerning this achievement, Moriuchi alleged that they have implemented strict measures to govern how they handle their positions and mitigate earnings volatility through active risk management.

The chief financial officer made this statement shortly after Laser Digital submitted an application for a federal bank charter in the United States, which would allow it to operate in the US.

By embracing this move, Nomura aims to establish its subsidiary as a provider of diverse digital asset custody solutions and deliver spot trading services to US-based businesses and individuals.

In the meantime, it is worth noting that the Japanese financial giant launched Laser Digital in Switzerland on September 21, 2022. At the time, Nomura issued a statement claiming that the new firm would specialize in digital assets, specifically cryptocurrency trading and venture capital.

Given the market’s enthusiastic reception of the new company in December 2022, the industry executives predicted that the subsidiary would start generating positive returns by 2024.

In 2025, Nomura and five other major Japanese wealth management companies expressed interest in launching crypto funds for local investors.

Japan may rescind the prohibition on spot crypto ETFs by 2028

Last week, Japan’s Financial Services Agency was considering lifting its ban on local spot crypto ETFs, such as Bitcoin, as early as 2028. This sudden decision demonstrated a possible policy change following similar approvals in the United States.

Sources familiar with the situation said this plan entails amending the Investment Trust Act Implementation Order to enable the classification of virtual currencies as “specific assets” that investment trusts can opt for as investment options.

Following their remarks, reports highlighted that leading financial firms such as SBI Holdings and Nomura Holdings have initiated development of related ETF products.

Upon regulatory approval of their listings by the Tokyo Stock Exchange, sources noted that individual investors would be able to make significant investments in cryptocurrency ETFs through their brokerage accounts, much as they can in stock or gold ETFs.

Meanwhile, a survey report indicated that at least six asset management firms were exploring these products for both individual and institutional clients. The report also highlighted tax reform as essential for removing these restrictions.

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