Japan’s Nomura Scales Back Crypto Positions After Bitcoin Volatility Hurts Profit

Nomura Balances Ambition With Caution After Crypto Market Flash Crash

Nomura Holdings is recalibrating its digital asset strategy after a turbulent third quarter.

The Japanese financial giant saw its net income slip to $590 million (91.6 billion yen) for the three months ending 31 December, a 9.7% decline compared to the previous year.

This dip was largely fueled by losses at Laser Digital, the firm’s specialised crypto subsidiary.

The setback comes on the heels of a historic market deleveraging event in October, which forced the group to rethink how it manages volatility.

While Nomura’s overseas units still managed a profit of 16.3 billion yen, that figure represents a 70% plunge from the same period last year.

The firm also felt the weight of its $1.8 billion acquisition of Macquarie Group’s public asset management business and costs related to a stock buyback program.

To manage its capital more tightly, Nomura plans to cancel 75 million common shares on 2 March 2026.

Why Did Nomura Tighten Risk Controls At Laser Digital

The shift in strategy follows a brutal flash crash that shook the foundations of the digital asset market.

Shortly after Bitcoin peaked at a record high of over $126,200 on 6 October, the market experienced a massive selloff.

Over $19 billion in leveraged positions vanished almost overnight in the largest deleveraging event in the industry's history.

By the end of the year, Bitcoin had retreated to approximately $87,000, about 31% below its peak, while the total crypto market cap shrank from $4.3 trillion to roughly $3 trillion.

During an earnings briefing, Nomura CEO Hiroyuki Moriuchi explained that the company has now implemented stricter position management to protect the group's balance sheet.

He noted that these measures are designed "to reduce risk exposure and limit earnings fluctuations from crypto market swings."

Hideyasu Ban, a senior analyst at Bloomberg Intelligence, suggested the panic was a cocktail of general market nerves and specific crypto shocks.

Ban remarked,

“There is a vague sense of unease about the overall market direction, and that seems to have combined with the surprise on the crypto front to set off selling.”

Can A National Trust Bank Charter Stabilise Laser Digital

Despite the immediate reduction in trading risk, Nomura is not retreating from the sector.

Instead, it is moving toward a more regulated, institutional model.

On 27 January 2026, Laser Digital’s Americas division applied to the U.S. Office of the Comptroller of the Currency (OCC) to establish a national trust bank.

If approved, this de novo application would allow the firm to operate across the United States without needing individual state licenses.

The proposed bank would steer clear of retail deposits, focusing instead on institutional custody, spot trading, and staking.

It also plans to hold U.S. government securities, bridging the gap between traditional finance and digital assets.

Steve Ashley, chairman and co-founder of Laser Digital, noted that the industry is maturing, stating that "large institutions are now taking a more structured and regulated approach to crypto."

Will Institutional Yield Products Drive Future Growth

Laser Digital is also diversifying its product shelf to attract long-term investors who are wary of pure speculation.

The firm recently launched a tokenized vehicle that tracks Bitcoin’s price while simultaneously generating a yield.

This builds on their 2023 Bitcoin Adoption Fund by mixing direct holdings with actively managed, market-neutral trades to create an income-generating asset.

By shifting focus from high-risk proprietary trading to regulated custody and yield-bearing products, Nomura is attempting to navigate the vague sense of unease currently haunting the markets.

The goal is to keep the firm's digital ambitions alive while ensuring that future crypto crashes do not take such a heavy toll on the parent company's bottom line.