As reported by Odaily, international rating agency Fitch Ratings stated that US banks with significant and concentrated exposure to cryptocurrency may face a negative reassessment of their business models or risk profiles. Fitch highlighted that while crypto integration can improve fees, yields, and efficiency, it also introduces reputational, liquidity, operational, and compliance risks. The report noted that stablecoin issuance, tokenized deposits, and on-chain technology may enhance services and payment efficiency, but banks must address challenges such as crypto price volatility, on-chain anonymity, and asset security. Fitch also warned of the systemic risks posed by stablecoins, particularly if their scale grows to the point of affecting the US Treasury market. Major banks like JPMorgan, Bank of America, Citibank, and Wells Fargo have already entered crypto-related businesses. Another rating agency, Moody's, previously warned that widespread stablecoin adoption could weaken the dollar's monetary transmission mechanism and increase regulatory complexity due to less transparent on-chain settlements.
Fitch Warns of Downgrade Risk for US Banks with High Crypto Exposure
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