Nomura's Crypto Conundrum: Losses Prompt Trading Pullback While US Banking Ambitions Advance
TOKYO/NEW YORK – In a move that underscores the complex balancing act facing traditional finance giants in the digital asset arena, Nomura Holdings disclosed quarterly losses at its crypto subsidiary while simultaneously pushing forward with ambitious regulatory applications to deepen its institutional footprint in the United States.
The Japanese financial conglomerate, the country's largest brokerage, revealed on January 30 that Laser Digital had posted losses for the October-December quarter, prompting a reduction in proprietary cryptocurrency positions and a tightening of risk controls. The results negatively impacted the group's European operations.
Yet, just 48 hours prior to that disclosure, the same subsidiary filed an application with the U.S. Office of the Comptroller of the Currency (OCC) to establish a federally chartered national trust bank. The proposed entity would offer custody, spot trading, and staking services to institutional clients, a clear bid for legitimacy and permanence in the world's largest financial market.
"The U.S. is the most important financial market globally," stated Steve Ashley, Chairman of Laser Digital. "We believe the next chapter of digital finance will be written by firms prepared to operate at that level of scrutiny."
To analysts and shareholders, however, the message from Tokyo focused on prudence. "We have tightened our management of positions, as well as risk exposure, to curb short-term volatility in profit," explained Chief Financial Officer Hiroyuki Moriuchi during the quarterly earnings call.
This apparent contradiction—retrenchment paired with expansion—is not a sign of strategic confusion but a deliberate pattern for Nomura. It reflects a bifurcated approach: managing a volatile proprietary trading book on one track, while steadily building regulated, fee-generating infrastructure on another, insulated from quarterly trading swings.
The strategy mirrors a broader trend in Japan's financial sector. Rival Daiwa Securities has begun offering crypto-backed loans, and the Financial Services Agency (FSA) is paving the way for crypto exchange-traded funds, with Nomura and SBI Holdings expressing keen interest. A 2024 survey by Nomura and Laser Digital found over half of institutional investors plan to allocate to digital assets within three years, presenting a crucial diversification opportunity for brokerages facing fee compression in traditional markets.
For Nomura, the path forward involves navigating short-term market turbulence without sacrificing long-term strategic positioning. The success of its licensing gambit in the U.S. and Japan will ultimately depend on regulatory winds, but the firm's actions signal a resolve not to be left behind in the evolving architecture of finance.
Market Voices
"This is classic Nomura—methodical and playing the long game. They're building the rails while others just trade on the tracks. The US charter application is a far more significant signal than a single quarter's trading loss." – David Chen, Portfolio Manager at Horizon Capital Advisors.
"It's a smart hedging of bets. You protect the core business from crypto volatility publicly while quietly assembling the pieces to be a major player when the regulation finally clears. They're speaking two different languages to two different audiences, and it's working." – Priya Sharma, Fintech Analyst at Bloomberg Intelligence.
"It's sheer hypocrisy. They're telling investors they're pulling back because it's too risky, while asking US regulators to trust them with safeguarding client assets. Which is it? Is crypto a dangerous speculation or the future of finance? They can't have it both ways without eroding trust." – Marcus Thorne, Editor-in-Chief, Crypto Skeptic newsletter.
"The sequential timing of the announcement and application is a masterclass in narrative management. It shows a mature understanding that building for institutional adoption is a multi-year process completely separate from trading desk P&L. Other Asian banks are watching closely." – Kenji Sato, Senior Fellow at the Tokyo Institute for Financial Strategy.