Nomura, Japan’s largest brokerage and banking group, said it will temporarily scale back some cryptocurrency trading positions after a weak quarter that squeezed profits and tightened its short‑term risk tolerance. The move appears aimed at smoothing earnings volatility while the firm continues to pursue longer‑term crypto ambitions.
What happened
- Nomura reported net income down nearly 10% in its third quarter (ended Dec. 31, 2025), leaving group profit below last year’s level and prompting management to rein in certain crypto trading exposures.
- Nomura’s European crypto arm, Laser Digital, posted trading losses during the period; executives singled those losses out as a key reason for tightening position limits. Management described the measures as temporary and targeted — not a market exit but a way to reduce swings to quarterly results.
Two tracks: risk control and expansion
- The cautious trading posture is running alongside expansion plans. Laser Digital has filed to broaden services overseas, including an application for a U.S. national trust bank charter to offer custody and trading to institutional clients.
- Analysts say this two‑track approach — restricting high‑risk trading that can blow out quarterly earnings while investing in infrastructure and institutional services — explains the apparent contradiction.
Market and financial context
- Investors reacted to the earnings update with a dip in Nomura shares, reflecting concern over the European trading hit and extra costs tied to a large acquisition completed in the quarter. Management also flagged one‑off charges contributed to the weaker profit line.
- The firm has tightened risk controls on digital‑asset positions and increased oversight of exposures that can move sharply with crypto prices.
What changes on the trading floor
- Expect fewer large directional bets from Nomura’s trading desk and more cautious position sizing. That should reduce profit volatility but could limit the upside if crypto markets rebound strongly.
Bottom line
Nomura’s latest actions look like a defensive, short‑term move to protect earnings while keeping a long‑term playbook for crypto infrastructure and institutional services intact. For the market, it’s a reminder that big traditional players are still hedging their way into crypto — dialing back trading risk now while building capabilities for future growth.
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