Nomura Tightens Reins on Crypto Unit After Market Turmoil Hits Quarterly Profits
In response to volatile cryptocurrency markets that dented its recent earnings, Japanese financial giant Nomura Holdings is moving to strengthen risk management protocols at its digital assets subsidiary, Laser Digital. The decision comes as the firm reported a 9.7% decline in net profit for the fiscal third quarter, partly attributed to losses within the crypto unit.
"We have introduced stricter position management to reduce our risk exposure and limit earnings volatility from crypto market swings," Nomura CEO Hiroyuki Moriuchi stated during an earnings briefing on Friday. The firm's net income fell to $590 million in the three months ended December 31.
The move follows a period of extreme turbulence for digital assets. On October 10, just days after Bitcoin reached a record high above $126,200, a sudden flash crash triggered the largest deleveraging event in the industry's history, wiping out over $19 billion in leveraged positions. According to Coingecko data, Bitcoin ended the year around $87,000—roughly 31% below its October peak—while the total crypto market capitalization slid from approximately $4.3 trillion to just over $3 trillion.
Analysts point to a confluence of factors behind the sell-off. "There is a vague sense of unease about the overall market direction, and that seems to have combined with the surprise on the crypto front to set off selling," noted Hideyasu Ban, a senior analyst at Bloomberg Intelligence, who suggested the reaction was likely short-term.
The tightening of controls presents a nuanced strategic shift for Nomura. Notably, just three days prior to Moriuchi's announcement, Laser Digital's Americas division filed an application with the U.S. Office of the Comptroller of the Currency (OCC) to establish a national trust bank. This places it among a cohort of crypto-native firms seeking to offer regulated asset management services for digital assets, signaling a long-term commitment to the sector even as near-term risks are being curtailed.
Market Reactions:
David Chen, Portfolio Manager at Horizon Capital: "This is a prudent, institutional-grade response. Nomura isn't exiting crypto; they're professionalizing it. Stricter position sizing and risk limits are exactly what traditional finance brings to this asset class to ensure sustainable growth."
Maya Rodriguez, Independent Financial Analyst: "It's a classic case of closing the stable door after the horse has bolted. These losses show major banks are still guessing when it comes to crypto volatility. Their foray looks more like speculative dabbling than a coherent strategy, and retail investors often pay the price for this institutional learning curve."
Kenji Tanaka, Fintech Consultant in Tokyo: "The simultaneous push for a U.S. trust bank charter is the real story. It shows Nomura is playing a dual game: insulating the parent company from short-term volatility while building regulated, fee-generating infrastructure for the long haul. It's a strategic hedge."
Sarah Lin, Crypto Venture Investor: "The flash crash was a stress test for everyone. Nomura's response—increasing controls while continuing to build—proves serious players are here to stay. The maturation of the market requires both innovation and robust risk frameworks."