Nomura Holdings will tighten risk controls and position management at its crypto arm Laser Digital after the unit’s losses contributed to a 9.7% drop in fiscal third-quarter profit.

The Japanese financial group reported net income of $584 million for the three months ended December 31. The result reflected pressure from the October selloff in digital assets, which hit Laser Digital’s trading book and fed through to group earnings.

Stricter Position Management at Laser Digital

Speaking at an earnings briefing, as quoted by Bloomberg, CEO Hiroyuki Moriuchi said Nomura had introduced stricter position management at Laser Digital. He said the changes aim to reduce the unit’s risk exposure and limit swings in the group’s earnings caused by crypto market volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad Read this Term.

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The measures follow a sharp reversal in crypto prices late last year. In October, after bitcoin reached a record high above $126,200, the market suffered a flash crash that wiped out more than $19 billion in leveraged positions. It was described as the largest deleveraging event in the industry’s history.

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Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term ended the year around $87,000, about 30% below its October peak. Over the same period, the total value of the crypto market fell from roughly $4.3 trillion to just over $3 trillion, according to Coingecko data. The risk tightening at Laser Digital comes as the unit pursues a more formal regulatory foothold in the United States.

National Trust Bank Application

A few days before Moriuchi outlined the new risk stance, Laser Digital said its Americas division had filed a de novo application with the U.S. Office of the Comptroller of the Currency to establish a national trust bank.

The proposed trust bank would target asset management and related services for the digital assets sector. The application places Laser Digital among several crypto-focused firms seeking federal charters to expand their institutional offerings.

Meanwhile, Laser Digital recently launched a tokenized vehicle designed to generate yield in addition to tracking Bitcoin’s spot performance. The new fund seeks to enhance returns for institutional investors by turning long-term Bitcoin exposure into an income-generating asset.

It builds on Laser Digital’s earlier Bitcoin Adoption Fund, which debuted in 2023 ahead of the introduction of spot Bitcoin ETFs. The strategy combines direct Bitcoin holdings with actively managed, market-neutral trades, marking a further expansion of Nomura’s institutional crypto offerings.