Nomura Holdings pushed back against suggestions it is losing confidence in crypto, saying tighter risk controls at its Laser Digital unit are designed to limit short-term earnings swings while focusing on long-term strategies, the bank told CoinDesk in emailed comments on Wednesday.
“Given the nature of the crypto-asset business, we recognize that a certain level of earnings volatility is inherent and we recognize the importance of taking a medium to long-term perspective,” the bank said. “At the same time, to limit short-term earnings fluctuations, we have further tightened position and risk limits. We will continue to capture growth opportunities in the crypto market while strengthening our services and customer base.”
The clarification follows comments from Nomura’s chief financial officer, Hiroyuki Moriuchi, who said during an earnings briefing that the firm introduced “stricter position management” at Laser Digital to reduce risk exposure and limit earnings swings driven by crypto market volatility. Losses at the unit contributed to a 9.7% drop in Nomura’s fiscal third-quarter profit.
The bank’s shift in strategy comes as the crypto market has been hit by a steep decline, with total value falling by nearly half a trillion since January 29, according to CoinGecko data. Bitcoin tumbled to its lowest level since President Donald Trump won re-election in early November 2024 on Tuesday, hitting a low of $72,870, though it later rebounded to above $76,000, according to CoinDesk data.
Nomura’s decision follows the Oct. 10 flash crash, which wiped out more than $19 billion in leveraged positions just days after bitcoin hit a record high above $126,200. Bitcoin ended the year around $87,000, about 31% below its peak, while the total crypto market cap also fell over 30% to just over $3 trillion.
Nomura denied that the decision means it has lost faith in the sector. “Laser Digital’s risk controls performed as designed: exposure was reduced early, losses were contained, and the firm avoided the more severe impacts felt globally,” it said.
The banking firm, considered Japan’s largest investment bank, with $673 billion in assets under management at the end of last year, acknowledged that volatility is an inevitable feature of the crypto business.
“At the core of the digital asset business, Laser Digital and other industry peers have beta exposure to the market,” the bank told CoinDesk. “But the risk taking at Laser Digital is at Trad-Fi institutional grade and the Q3 performance is not representative of any fundamental weakness.”
