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- Nomura cuts crypto risk in Europe after recent losses.
- The firm keeps its long term commitment to digital assets.
- Laser Digital seeks approval to expand in the United States.
Nomura has moved to lower its exposure to cryptocurrency risk at its European digital asset unit, Laser Digital. The decision follows losses recorded during the third quarter. The Japanese brokerage confirmed the step while stressing continued support for crypto-related business lines.
The change represents a move that is more cautious than a complete withdrawal of digital assets. Nomura is Japan’s largest wealth management firm. The firm manages around 153 trillion dollars in client assets and has a significant market share in Japan. The volatility in crypto assets prompted the firm to reassess their position.
Nomura Sees Japanese Firms Sustain Blockchain Interest
The firm reduced its holdings in cryptocurrencies and tightened its oversight of trading activity. The finance chief noted that the company made moves in its risk exposure in a bid to curb short-term volatility in earnings. Laser Digital is a European-based company that runs Nomura’s cryptocurrency trading and investment business.
Although the extent of the losses by the company is unknown, they occurred at a time when there were market stresses. There were over 19 billion dollars in leveraged cryptocurrency trades that were set for liquidation at the time. The market has not been able to recover since the event.
Japanese companies have been known for their strength during a downturn in the market. The companies have been continuing to explore blockchain and Bitcoin services despite the decline in cryptocurrency values. However, the significant decline in some of the major cryptocurrencies has been a test of trust.
The move by Nomura can be considered a move of discipline rather than a move of panic. The company wants to protect its capital while still maintaining future options. The company made it clear that it still sees cryptocurrency as a strategic asset. The company plans on expanding in the medium and long term. The company launched Laser Digital in Switzerland in September 2022.
Market Volatility Pushes Institutions Toward Caution
It is meant for crypto trading, venture investing, and related services. The executives had earlier planned for profitability by 2024. Last year, Nomura Holdings, like other major Japanese banks, began exploring crypto funds for local investors. This is a demonstration of the increasing interest in the sector despite the volatile nature of the assets.
The current decline is a reality check for the sector. Nomura is being cautious and wants more stringent measures before increasing activities in the sector. Laser Digital has filed for a National Trust Bank charter in the United States. This will enable the organization to offer services all over the United States. This is a significant step towards the expansion of the organization.
The crypto sector is currently volatile. Bitcoin has lost about five percent of its value in the last day. The price is currently at 78,448 dollars. Ethereum has lost more than nine percent of its value and is currently at 2,402 dollars. Nomura Holdings is being cautious and is focusing on balance and patience in the sector.
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