Nomura CFO Explains the Risk Control Strategy in Cryptocurrencies

Hiroyuki Moriuchi, a key finance officer at Nomura Holdings, revealed during a recent conference call that the Japanese banking giant is implementing stricter measures to monitor its exposure to digital assets. The executive emphasized that these actions are designed to minimize volatility in quarterly results, reflecting the operational difficulties the entity has faced in international markets.

What Does the CFO Role in Risk Management Mean?

In the context of Nomura, the CFO (Chief Financial Officer) plays a crucial role in overseeing the organization’s risk strategy. This executive is responsible for assessing financial exposures and determining what adjustments are necessary to protect shareholders’ interests. In this specific case, Nomura’s CFO has identified that volatility in the cryptocurrency market requires tighter controls, although the company maintains its long-term vision in the sector.

Nomura Strengthens Controls After Losses in European Operations

During the most recent quarter, Nomura experienced a decline in profits, primarily driven by setbacks in its European division and extraordinary expenses related to the integration of Macquarie Group. The investment bank closed a $1.8 billion acquisition of Macquarie Group’s public asset management business in the United States and Europe, an operation that expands its global reach but has also generated significant transition costs. Despite these challenges, profits from trading and wealth management operations helped partially offset the losses.

Laser Digital Aims to Expand as a Federal Banking Institution

Laser Digital, Nomura’s digital assets division, continues to advance its plans to obtain authorization to operate as a federally chartered bank in the United States. This expansion would allow the entity to access greater operational and regulatory capabilities. Although Nomura has decided to temporarily reduce its exposure to crypto assets to stabilize short-term profits, the company’s commitment to innovation in blockchain technology and digital assets remains intact, reflecting a balanced strategy between financial prudence and strategic ambition.