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Japan’s largest wealth manager, Nomura Holdings, has reduced its cryptocurrency exposure following losses at its European digital asset subsidiary, Laser Digital, during the third quarter of its fiscal year (October–December 2025).
In earnings released late January 2026, Nomura reported a 9.7% year-over-year drop in net income to ¥91.6 billion ($590 million), partly due to a ¥10.6 billion loss in its European operations. This included one-time costs from acquiring Macquarie Group’s public asset management unit, but crypto market volatility contributed significantly, with Laser Digital’s proprietary trading suffering from price swings in late 2025.
Chief Financial Officer Hiroyuki Moriuchi stated during the earnings call that the firm has tightened position management and reduced crypto-related holdings to curb short-term profit volatility and strengthen risk controls. The move reflects broader caution amid global market turbulence, including tighter liquidity and weaker risk appetite that pressured digital assets.
Despite the pullback, Nomura emphasized that its medium- to long-term commitment to digital assets remains unchanged. Executives expressed intentions to expand crypto-related businesses, including through Laser Digital’s pursuits such as applying for a U.S. national trust bank license for custody and spot trading services.
The decision aligns with trends among traditional institutions adjusting strategies in response to recent crypto corrections. While Q3 2025 saw strong institutional inflows into assets like Bitcoin and Ethereum ETFs earlier in the year, later volatility—culminating in sharper declines in Q4—highlighted risks for proprietary and trading exposures.
Analysts view this as a pragmatic risk management step rather than a full retreat, prioritizing capital preservation amid uncertainty. Nomura, managing around $153 trillion in client assets and holding about 15% of Japan’s domestic market, continues to explore opportunities in blockchain infrastructure and tokenized securities, but with more conservative pacing aligned to client needs.
The adjustment underscores ongoing challenges for institutional adoption of crypto during volatile periods, even as long-term fundamentals and regulatory progress support potential recovery.
