Fitch: Banks with significant crypto business risk credit downgrades

Global credit rating agency Fitch Ratings has warned that U.S. banks with substantial cryptocurrency operations could face credit rating downgrades. According to a Fitch report cited by Cointelegraph, activities such as issuing stablecoins, tokenizing deposits, and utilizing blockchain technology can present opportunities for improved profitability. However, the agency noted that these ventures also increase risks related to a bank's reputation, liquidity, operations, and regulatory compliance. Consequently, Fitch stated that banks with large-scale crypto-related businesses may be subject to negative rating actions. The report also mentioned that major banks like JPMorgan, Bank of America, Citi, and Wells Fargo are involved in the crypto sector.