Nikolas Sargeant
Japanese banking giant Nomura will reduce cryptocurrency exposure at its European digital asset subsidiary citing challenging market conditions and a significant decline in overseas profits during the third quarter ending December 31.
Nomura chief financial officer Hiroyuki Moriuchi stated the firm would decrease risk exposure at Laser Digital Holdings, its European digital asset subsidiary, after it posted losses during the quarter amid cryptocurrency market turbulence, Bloomberg Japan reported Friday.
Moriuchi indicated that while the subsidiary experienced difficulties during the crypto market downturn, the firm will manage stability through stringent position management over the coming months. He emphasized Nomura's commitment to digital assets remains unchanged, with the company eyeing expansion in the medium to long-term future for its Switzerland-based subsidiary.
Nomura's third quarter began just before a major cryptocurrency market crash in October, which sent Bitcoin plummeting from its $126,000 peak on October 6 to approximately $88,000 by December 31 at the quarter's end, according to CoinGecko data. The sharp correction created challenging conditions for institutions with significant digital asset exposure.
Nomura stated in its third-quarter earnings report Friday that its crypto and non-crypto European ventures accounted for a 10.6 billion yen ($68.47 million) loss on its balance sheet. The firm still posted profit from overseas ventures, generating 16.3 billion yen ($105.29 million), representing a 70% decrease from the same period a year earlier.
The company reported net income of 91.6 billion yen ($590 million), a 9.7% decrease from Q3 2024. Part of the decline stemmed from a $1.8 billion acquisition of Macquarie Group's US and European public asset management business, along with expenses tied to a stock buyback program.
Nomura shares on the Tokyo Stock Exchange declined approximately 6.8% on Monday as the market reacted to the third-quarter results. The stock movement reflects investor concern about reduced overseas profitability and cryptocurrency-related losses despite the firm's broader financial stability.
Moriuchi's comments suggest Nomura is balancing short-term risk management with long-term strategic positioning in digital assets. The temporary reduction in crypto exposure allows the firm to navigate current market volatility while maintaining infrastructure and capabilities for future expansion when conditions improve.
The approach reflects broader institutional caution toward cryptocurrency markets following the October correction, with traditional financial institutions reassessing risk exposure while attempting to preserve strategic optionality in the evolving digital asset sector.
