Nomura Reins In Crypto Ambitions as Market Volatility Bites
In a sign of growing caution among traditional finance giants, Nomura Holdings is tightening controls on its cryptocurrency operations after market swings pushed its European digital asset subsidiary into the red last quarter.
The move by Japan's largest wealth manager comes amid a turbulent period for digital assets. Over the weekend, Bitcoin briefly dipped below the psychologically significant $80,000 mark, exacerbating paper losses for corporations holding large crypto reserves on their balance sheets.
Nomura's shares fell sharply on Monday, dropping 6.7% in Tokyo trading—their steepest intraday decline in over nine months. The sell-off followed the firm's report of a 9.7% year-on-year drop in net income to ¥91.6 billion ($590 million) for the quarter ending December 31.
"We are reducing the amount of risk" at Laser Digital Holdings, Nomura's Switzerland-based crypto unit, Chief Financial Officer Hiroyuki Moriuchi confirmed during an earnings briefing. He attributed the decision to the subsidiary's swing to a loss in Q3, driven by market fluctuations, but stressed the group's long-term commitment to the digital asset space remains intact.
The crypto setback casts a shadow over what was otherwise a robust quarter for Nomura. Pretax income across its four core business segments hit an 18-year high, fueled by record recurring revenue in Wealth Management and a jump in assets under management following a major acquisition.
Analysts view the pullback as a prudent, if telling, response to current conditions. "Nomura's market reaction is likely short-term," said Hideyasu Ban, senior analyst at Bloomberg Intelligence, citing a blend of investor unease over crypto losses and broader Asian market softness.
Nomura's experience reflects a broader trend. Major corporate holders of digital assets are reporting billions in unrealized losses. MicroStrategy disclosed a $17.44 billion paper loss on its Bitcoin holdings for the last quarter, while Japan's Metaplanet forecast a massive impairment on its Bitcoin treasury. Despite the red ink, some firms, including MicroStrategy, continue to accumulate assets, betting on long-term appreciation.
In a contrasting forward-looking move, Nomura's Laser Digital has applied for a U.S. national bank trust charter, a strategic play that would allow it to offer digital asset custody and trading services nationwide without navigating a patchwork of state licenses. The application joins a wave of similar filings from fintech firms anticipating a more favorable regulatory environment.
Market Voices:
Akio Tanaka, Portfolio Manager in Tokyo: "This is a necessary recalibration, not a retreat. Nomura is demonstrating responsible risk management. The core business is stronger than ever, and this temporary crypto volatility shouldn't overshadow that fundamental strength."
Sarah Chen, Fintech Analyst in Hong Kong: "The simultaneous scaling back and regulatory filing is fascinating. It shows Nomura is playing both defense and offense—battening down the hatches for the current storm while preparing the legal groundwork for the next bull run. It's a sophisticated, long-game strategy."
Marcus Reed, Independent Crypto Trader: "It's pure hypocrisy! They tout 'long-term commitment' while cutting risk at the first sign of trouble. This is exactly why legacy finance will never truly understand crypto. They want the upside but can't handle the volatility that comes with it. They're proving to be fair-weather friends to the asset class."
Dr. Elara Vance, Economic Historian: "We've seen this pattern before with new asset classes. Institutional adoption is never a straight line. Periods of aggressive expansion are followed by consolidation and risk reassessment. Nomura's actions are a classic case study in this iterative adoption process."