Nomura Holdings rejected suggestions that it is losing confidence in cryptocurrencies, saying tighter risk controls at its Laser Digital unit are designed to limit short-term profit swings while it focuses on long-term strategies, the bank told CoinDesk in emailed comments Wednesday.
“Given the nature of the cryptoasset business, we recognize that a certain level of earnings volatility is inherent and recognize the importance of taking a medium to long-term perspective,” the bank said. “At the same time, to limit short-term profit swings, we have further tightened position and risk limits. We will continue to seize growth opportunities in the cryptocurrency 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 firm introduced “tighter position management” at Laser Digital to reduce risk exposure and limit earnings swings driven by cryptocurrency market volatility. Losses at the unit contributed to a 9.7% drop in Nomura’s fiscal third-quarter profit.
The bank’s change in strategy comes as the cryptocurrency 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 on Tuesday to its lowest level since President Donald Trump won re-election in early November 2024, hitting a low of $72,870, although it later recovered to more than $76,000, according to data from CoinDesk.
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 of more than $126,200. Bitcoin ended the year around $87,000, about 31% below its peak, while the total crypto market capitalization also fell more than 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 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 cryptocurrency business.
“Due to the nature of the digital asset business, Laser Digital and other industry peers have beta exposure to the market,” the bank told CoinDesk. “However, the risk taking at Laser Digital is institutional Trad-Fi level, and the third quarter performance is not representative of any fundamental weakness.”
