TechFlow, Dec 9 — According to Cointelegraph, international credit rating agency Fitch Ratings issued a report warning of potential negative reassessments for U.S. banks with "significant" exposure to cryptocurrency.
Fitch Ratings stated that while cryptocurrency integration could enhance fees, yields, and efficiency, it also poses "reputational, liquidity, operational, and compliance" risks to banks. The report noted that stablecoin issuance, deposit tokenization, and blockchain technology applications offer opportunities for banks to improve customer service, but banks must adequately address challenges such as cryptocurrency price volatility, the pseudonymity of digital asset owners, and protection against theft of digital assets.
The report also emphasized that if the stablecoin market grows large enough to impact the Treasury securities market, it could pose systemic risks. Major banks including JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo have all entered the cryptocurrency space.
