Nomura Holdings has pushed back against suggestions that it is losing confidence in crypto, saying tighter risk controls at its Laser Digital unit are designed to limit short-term profit fluctuations while focusing on longer-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 profit fluctuations, we have further tightened our positions and risk limits. We will continue to seize growth opportunities in the crypto market while strengthening our services and customer base.”
The clarification follows comments from Nomura CFO Hiroyuki Moriuchi, who said during an earnings briefing that the company had introduced “stricter position management” at Laser Digital to reduce risk exposure and limit profit fluctuations due to crypto market volatility. The unit’s losses contributed to a 9.7% decline in Nomura’s fiscal third-quarter profit.
The bank’s change in strategy comes as the crypto market is hit by a sharp decline, with the total value falling by almost half a trillion since January 29, according to data from CoinGecko. Bitcoin fell to its lowest level since President Donald Trump’s re-election in early November 2024 on Tuesday, hitting a low of $72,870, although it later rebounded to over $76,000, according to CoinDesk data.
Nomura’s move follows the Oct. 10 flash crash, which wiped out more than $19 billion in leveraged positions just days after bitcoin hit an all-time high above $126,200. Bitcoin ended the year around $87,000, about 31% below its peak, while the total crypto market cap also fell more than 30% to just over $3 trillion.
Nomura denied the move, meaning it has lost confidence in the industry. “Laser Digital’s risk controls worked as intended: exposure was reduced early, losses were contained, and the company avoided the most severe impacts felt around the world,” he 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 sector.
“By the nature of the digital asset business, Laser Digital and other industry peers have beta exposure to the market,” the bank told CoinDesk. “However, risk-taking at Laser Digital is at Trad-Fi institutional level, and third quarter performance is not representative of any fundamental weaknesses.”
