Japanese Banking Giant Cuts Crypto Bets After Q3 Profit Slump

bitcoinistPublished on 2026-02-03Last updated on 2026-02-03

Abstract

Japan's largest brokerage firm Nomura announced it will temporarily reduce its cryptocurrency trading positions following a 10% decline in net income for the third quarter ending December 31. The profit slump, partly attributed to trading losses at its European crypto subsidiary Laser Digital, prompted tighter risk controls and position limits to manage earnings volatility. Despite this short-term pullback, Nomura remains committed to its long-term digital asset strategy, with Laser Digital actively seeking to expand services internationally, including applying for a U.S. trust bank charter. The firm aims to balance immediate risk management with continued development of crypto infrastructure and institutional services.

Nomura, Japan’s biggest brokerage and banking giant, said it will temporarily trim its cryptocurrency positions after a weak quarter that dented profits and tightened its short-term risk tolerance. The pullback looks aimed at smoothing swings to earnings while the firm keeps its longer-term plans for digital assets alive.

Bank Cuts Crypto Exposure After Profit Decline

According to earnings disclosures and company remarks, Nomura’s net income fell nearly 10 percent in the third quarter that ended December 31, leaving group profit lower than a year earlier and prompting management to curb some crypto trading positions to limit further hits.

Nomura’s European crypto arm, Laser Digital, had posted trading losses during the period, which management singled out as a key factor behind the move to tighten position limits.

Reports note that executives described the steps as temporary and targeted — not an exit from the market but a way to manage volatility while other parts of the business keep growing.

Short-Term Pullback, Long-Term Play

There is a split in the timeline. On one hand, Laser Digital has recently filed paperwork to expand its services abroad, including applying for a US national trust bank charter as it seeks to offer custody and trading to institutional clients.

On the other hand, trading desks that took losses are being put on a tighter leash so quarterly results don’t swing wildly. That two-track approach is what analysts say explains the seeming contradiction.

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Investors reacted quickly. Nomura’s shares slipped after the earnings update, reflecting market concern about the hit to European operations and the extra costs tied to a large acquisition completed in the period.

Management has flagged that one-off charges played a role in the weaker profit line, alongside the trading losses.

Risk Controls Tightened, Growth Goals Kept

Reports say Nomura has tightened risk controls around digital-asset positions and is conducting stricter oversight of exposures that can swing with crypto price moves.

At the same time, executives stressed the firm’s broader commitment to building crypto infrastructure and services over the medium to long term, rather than abandoning the sector outright.

The immediate effect is clear: fewer large directional bets in the trading book and more cautious position sizing. That reduces profit volatility but can limit upside if crypto prices rebound sharply.

Featured image from The Exchange Asia, chart from TradingView

Related Questions

QWhy did Nomura decide to temporarily reduce its cryptocurrency positions?

ANomura decided to temporarily trim its crypto positions after a weak third quarter that saw a nearly 10% decline in net income, which tightened its short-term risk tolerance. Trading losses at its European crypto arm, Laser Digital, were a key factor behind this move.

QWhat was the performance of Nomura's net income in the third quarter ending December 31?

ANomura's net income fell nearly 10 percent in the third quarter that ended December 31, leaving group profit lower than it was a year earlier.

QWhat long-term plans does Nomura have for its digital assets business despite the short-term pullback?

ADespite the short-term reduction in crypto trading, Nomura remains committed to building crypto infrastructure and services over the medium to long term. Its European arm, Laser Digital, has filed to expand services abroad, including applying for a US national trust bank charter.

QHow did investors react to Nomura's earnings update and what were their concerns?

AInvestors reacted by pushing Nomura's shares lower. Their concerns were primarily about the hit to the firm's European operations and the extra costs associated with a large acquisition that was completed during the period.

QWhat specific measures has Nomura implemented to manage risk in its digital asset exposures?

ANomura has tightened risk controls around digital-asset positions and is conducting stricter oversight of exposures that are sensitive to cryptocurrency price movements. This includes reducing large directional bets and implementing more cautious position sizing.

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