- Nomura Holdings has tightened risk management and reduced crypto positions after unspecified losses at its Laser Digital unit in Q3 FY2025.
- The adjustments contributed to a 9.7% year-over-year decline in net income to ¥91.6 billion, with European operations posting a ¥10.6 billion loss.
- Despite the cutbacks, Nomura’s CFO affirmed the firm’s ongoing dedication to digital assets and plans for medium- to long-term expansion.
Japanese financial powerhouse Nomura Holdings Inc. is paring back its exposure to cryptocurrencies in response to market volatility that led to losses at its digital asset subsidiary, Laser Digital, during the third quarter of fiscal 2025.
The Zurich-based Laser Digital, launched in 2022 to handle Nomura’s crypto trading, asset management, and venture investments, suffered hits to its proprietary trading book amid turbulent conditions in the digital asset markets. This contributed to broader challenges in Nomura’s European operations, which swung to a ¥10.6 billion loss, dragging down group-wide results. Overall, the firm’s net income fell 9.7% year-over-year to ¥91.6 billion, falling short of analyst expectations and prompting a 5.3% drop in shares following the earnings announcement.
Risk management tightening has been a key response, with Nomura implementing stricter position controls to mitigate short-term profit volatility. “We have tightened our management of positions, as well as risk exposure [to curb short-term volatility in profit],” said Chief Financial Officer Hiroyuki Moriuchi during an earnings call. Despite the reductions, Moriuchi emphasized that Nomura’s “commitment to digital asset-related businesses remains unchanged,” with hopes to expand operations in the medium to long term.
The decision reflects broader caution among traditional financial institutions navigating crypto’s inherent risks, such as price swings and regulatory uncertainties. Analysts note that while Laser Digital’s losses were unspecified, they highlight the challenges of proprietary trading in volatile assets like Bitcoin and Ethereum. Nomura’s move comes even as the subsidiary recently applied for a U.S. operating permit, signaling continued strategic interest despite near-term retreats. (Crypto Briefing)
For context, see this key X post from @TheBlock__: Japan’s Nomura cuts down crypto exposure following Q3 losses.
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