Nomura Slashes Crypto Exposure After Q3 Losses – What’s Next for Japan’s Banking Giant?

• Why Is Nomura Reducing Its Crypto Footprint Now?
• How Does Nomura’s Crypto Strategy Compare to Peers?
• Will Japan’s ETF Policy Shift Change the Game?
• What’s Next for Laser Digital and Nomura’s Crypto Ambitions?
• FAQs: Nomura’s Crypto Moves Decoded

Nomura Holdings, Japan’s largest investment bank, is scaling back its cryptocurrency investments following undisclosed Q3 losses in its digital asset division, Laser Digital. Despite this pullback, CFO Hiroyuki Moriuchi reaffirmed the firm’s long-term commitment to crypto, even as it tightens risk controls. Meanwhile, Japan’s Financial Services Agency (FSA) is reportedly considering lifting its ban on spot bitcoin ETFs by 2028, potentially opening doors for Nomura and rivals like SBI Holdings. Here’s a deep dive into Nomura’s crypto strategy, market positioning, and what this means for Japan’s financial landscape.

Why Is Nomura Reducing Its Crypto Footprint Now?

Nomura’s decision to trim cryptocurrency exposure comes after its Swiss-based Laser Digital unit reported third-quarter losses, though exact figures remain undisclosed. CFO Hiroyuki Moriuchi framed this as a tactical risk management move rather than a retreat: "Our dedication to digital assets hasn’t changed—we’re just adjusting our sails in choppy waters." The bank oversees ¥153 trillion ($1.1 trillion) in client assets, so even a minor crypto downturn can Ripple through its portfolio. Interestingly, this recalibration coincides with Laser Digital’s pending application for a U.S. bank charter, aiming to offer custody and spot trading services stateside. Talk about hedging your bets!

How Does Nomura’s Crypto Strategy Compare to Peers?

While Nomura treads cautiously, other Japanese firms like SBI Holdings are charging ahead with crypto ventures. This divergence highlights a broader tension in Japan’s finance sector: embrace volatility for potential gains or prioritize stability? Nomura seems to be splitting the difference—scaling back short-term trading while doubling down on infrastructure (like its Switzerland-based Laser Digital, launched in September 2022). As Moriuchi noted, "We’re playing the long game." The subsidiary, initially projected to turn profitable by 2024, now faces headwinds from 2023’s crypto winter. Still, with 15% market share domestically, Nomura can afford patience where smaller players can’t.

Will Japan’s ETF Policy Shift Change the Game?

Last week’s bombshell: Japan’s FSA may greenlight spot crypto ETFs by 2028, mirroring the U.S. SEC’s recent approvals. This could rewrite the rules for Nomura and competitors. Sources say amendments to the Investment Trust Act would classify cryptos as "specific assets," letting firms develop ETF products. Nomura and SBI are already rumored to be drafting proposals. Imagine Tokyo salarymen buying Bitcoin ETFs alongside their usual stock picks—it’s a far cry from 2022, when regulators treated crypto like financial plutonium. As one BTCC analyst quipped, "Japan’s moving from ‘just say no’ to ‘how fast can we go?’"

What’s Next for Laser Digital and Nomura’s Crypto Ambitions?

Despite the Q3 stumble, Laser Digital’s U.S. expansion plans signal Nomura isn’t abandoning crypto—it’s repositioning. The subsidiary’s dual focus (venture capital + trading) mirrors strategies by Galaxy Digital and other crypto-native firms. And let’s not forget 2025’s planned crypto funds for Japanese retail investors. Sure, today’s pullback makes headlines, but Nomura’s playing 4D chess while others play checkers. As Moriuchi put it: "Active risk management today ensures we’re still here tomorrow." Given Japan’s history of financial conservatism, that might just be the smartest bet in town.