Nomura temporarily reduces crypto exposure as Q3 profits drop

Nomura Holdings, Japan’s largest investment bank, announced a significant reduction in its third-quarter net income, prompting the firm to initiate temporary risk-management measures, particularly concerning its exposure to volatile digital assets. The bank reported that Q3 profits fell substantially year-over-year, primarily driven by challenging market conditions, reduced fixed-income trading volume in its wholesale division, and inflationary pressures impacting operational costs.

In direct response to the earnings downturn, Nomura’s management confirmed a tactical decision to temporarily scale back its proprietary trading exposure in the cryptocurrency sector. This move is explicitly designed as a precautionary measure to conserve capital and mitigate balance sheet risk amidst persistent volatility in the digital asset landscape. While the firm maintains its strategic, long-term commitment to blockchain technology and digital finance—evidenced by ongoing investment in its digital assets unit, Laser Digital—the immediate focus has shifted toward enhancing stability.

Nomura leadership stressed that the reduction is not a cessation of crypto involvement but a necessary, temporary adjustment to hedge against short-term market uncertainty and macroeconomic instability. The bank is expected to review and potentially increase its risk tolerance in the digital asset space when global market sentiment stabilizes and trading volumes recover in the coming quarters.

Source: Nomura temporarily reduces crypto exposure as Q3 profits drop