Fitch Ratings warns of the risks of U.S. banks' exposure to cryptocurrencies and may reassess the ratings of related banks

According to Cointelegraph, international credit rating agency Fitch Ratings has released a report warning of a potential negative reassessment for U.S. banks with "significant" exposure to cryptocurrencies.

Fitch Ratings stated that while cryptocurrency integration can enhance fees, yields, and efficiency, it also poses "reputational, liquidity, operational, and compliance" risks to banks. The report noted that the issuance of stablecoins, the tokenization of deposits, and the application of blockchain technology provide banks with opportunities to improve customer service, but banks need to adequately address challenges such as cryptocurrency value volatility, the anonymity of digital asset owners, and the protection against digital asset theft.

The report also emphasized that if the stablecoin market grows to a size that could impact the treasury market, it may pose systemic risks. Major banks such as JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo are all involved in the cryptocurrency space.