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

Core Insights - Nomura has reduced its positions in cryptocurrencies due to unspecified losses in its crypto arm during the third quarter [1] - The firm remains committed to digital asset-related businesses and aims to expand its crypto operations in the medium to long term [2] Risk Management - Nomura, Japan's largest wealth manager with approximately $153 trillion in client assets, is tightening its management of positions and risk exposure to mitigate short-term profit volatility [3] - The company's Europe-based crypto subsidiary, Laser Digital, is specifically reducing risk following recent market fluctuations [1][3] Business Expansion - Laser Digital has applied for a national trust bank charter in the United States, which would enable it to provide a range of crypto custody and spot trading services [4] - The subsidiary was launched in Switzerland on September 21, 2022, with a focus on digital assets, including cryptocurrency trading and venture capital [4] - Nomura anticipates that Laser Digital will achieve profitability by 2024 [4] Market Context - Despite the downturn in cryptocurrency prices, Japanese firms, including Nomura, have shown a willingness to invest in Bitcoin and crypto-related businesses [2] - The current market conditions have seen Bitcoin and Ethereum prices decline by 5.3% and 9.1% respectively over the past 24 hours [7]