Nomura tightens crypto risk controls after European losses, keeps long-term crypto commitment
Nomura Holdings has tightened risk controls for its crypto business after reporting losses in its European operations partly linked to digital-asset market setbacks. CFO Hiroyuki Moriuchi said measures aim to limit short-term earnings volatility while the firm reduces near-term exposure to digital assets. Despite a quarterly profit decline driven by European losses and one-off costs from the $1.8 billion acquisition of Macquarie Group’s US and European public asset management unit, Nomura reiterated a long-term commitment to crypto. The bank is the parent company of Laser Digital, its digital-asset arm, which is seeking approval to operate as a federally chartered bank in the US. The changes are positioned as risk-management adjustments to stabilize earnings rather than an exit from the crypto sector.
Neutral
Nomura’s move to tighten crypto risk controls is primarily a risk-management response to losses, not a withdrawal from the sector. That suggests limited immediate systemic impact on crypto prices: institutions reducing near-term exposure can exert downward pressure, but the firm’s stated long-term commitment and ongoing operations (including Laser Digital’s US bank charter bid) reduce the likelihood of a large sustained sell-off. Short-term implications: modest bearish pressure on crypto sentiment and possible localized selling as Nomura trims exposures and rebalances positions, especially in traded tokens tied to institutional inventories. Volatility may increase around related news (earnings, regulatory updates, Laser Digital developments). Long-term implications: neutral-to-slightly-bullish, since continued institutional engagement and expansion via the Macquarie asset-management acquisition support eventual demand growth if markets stabilize. Historical parallels: banks and asset managers tightening risk limits after drawdowns (e.g., 2022 market stress) produced short-term downward pressure and higher volatility but did not by themselves cause prolonged bear markets when institutions maintained long-term strategies. Traders should watch: Nomura public filings, position disclosures, Laser Digital regulatory progress, and flow data; these will indicate whether exposure reductions are temporary risk controls or the start of broader institutional de-risking.