Fitch Ratings flags risk for US banks with high crypto exposure
While crypto offers banks an opportunity to generate new sources of revenue, Fitch warns it could bring risks that could lead to rating revisions.
International credit rating agency Fitch Ratings has warned that it may reassess US banks with “significant” cryptocurrency exposure negatively.
In a report posted on Sunday, Fitch Ratings argued that while crypto integrations can boost fees, yields and efficiency, they also pose “reputational, liquidity, operational and compliance” risks for banks.
“Stablecoin issuance, deposit tokenization and blockchain technology use give banks opportunities to improve customer service. They also let banks leverage blockchain speed and efficiency in areas such as payments and smart contracts,” Fitch said, adding: