Nomura Holdings has announced plans to strengthen risk management protocols at its cryptocurrency unit, Laser Digital, following significant losses that impacted the company”s profits. According to a report by Bloomberg, the firm experienced a 9.7% drop in its fiscal third-quarter profit due to challenges in its crypto operations.
During a recent earnings call, Nomura”s CEO, Hiroyuki Moriuchi, highlighted the implementation of stricter position management as a measure to mitigate risk exposure and stabilize earnings amidst the volatility of the crypto market. The sector faced a severe setback on October 10, just days after Bitcoin reached an all-time high exceeding $126,200. This flash crash resulted in the liquidation of over $19 billion in leveraged positions, marking one of the most significant deleveraging events in the history of the cryptocurrency industry.
By the end of the year, Bitcoin was trading around $87,000, representing a decline of approximately 31% from its peak. Simultaneously, the overall market capitalization for cryptocurrencies fell from around $4.3 trillion to just over $3 trillion, as reported by Coingecko data. Senior analyst Hideyasu Ban from Bloomberg Intelligence noted a prevailing sense of uncertainty regarding market trends, suggesting that the recent turmoil may only reflect a temporary reaction rather than a long-term trend.
For the three-month period ending December 31, Nomura reported a net income of $590 million. Just days before the announcement regarding tightening crypto risk controls, Laser Digital disclosed that its Americas division had applied to the U.S. Office of the Comptroller of the Currency (OCC) to establish a national trust bank. This move aligns with a broader trend among cryptocurrency firms seeking to provide asset management services tailored to digital assets.
