#How is Nomura Enhancing Risk Management in Cryptocurrencies?
Nomura Holdings, the foremost investment bank and brokerage firm in Japan, is taking significant steps to improve risk management within its cryptocurrency sector. This initiative comes in response to recent losses in Europe, which were partly attributable to fluctuations in the digital asset market. CFO Hiroyuki Moriuchi highlighted during a recent conference call that these risk management measures are designed to stabilize short-term earnings volatility. Even with a reduced exposure to digital assets, Nomura remains committed to its long-term strategy involving cryptocurrencies.
Recently, the firm encountered a decline in quarterly profits, primarily due to losses in its European operations and remarkable costs associated with its acquisition of Macquarie Group. These setbacks countered gains realized in trading and wealth management.
The acquisition of Macquarie Group's public asset management business in the United States and Europe, valued at $1.8 billion, has allowed Nomura to expand its footprint in global asset management. This strategic move positions the firm to leverage new opportunities in a complex investment landscape.
Notably, Nomura manages Laser Digital, its digital asset division, which is actively pursuing approval to operate as a federally chartered bank in the United States. This pursuit marks a significant evolution in its approach to digital assets, emphasizing the firm's dedication to integrating cryptocurrency services into its broader business model.