International credit-rating agency, Fitch Ratings, has cautioned that U.S. banks with ‘significant’ exposure to cryptocurrencies could see their credit ratings reassessed downward.
While integrating crypto operations can offer banks new revenue streams – such as increased fees, yields, and greater operational efficiency – Fitch warns these benefits come with serious risks.
According to Fitch, banks dealing heavily in crypto face ‘reputational, liquidity, operational and compliance’ risks.
Recall that in October 2025, a similar rating by S&P Global Ratings agency assigned a ‘B-‘ issuer credit rating to Strategy Inc. According to the agency:
“Our ratings on Strategy incorporate our view of the company’s narrow business focus, high bitcoin concentration, low U.S. dollar liquidity, and very weak risk-adjusted capital offset, only partially by Strategy’s strong access to capital markets and prudent management of its capital structure.
The company’s concentration in bitcoin is key to its strategy and will likely continue to weigh on our ratings. Strategy’s treasury reserve strategy gives indirect exposure to bitcoin to investors who can’t have or prefer to avoid direct exposure to bitcoin.”
PRESS RELEASE | The First Bitcoin Treasury Company Receives a B- Rating from a Major Credit Rating Agency
Fitch added that although stablecoin issuance, deposit tokenization, and blockchain-based services could potentially enhance payment and smart-contract solutions, banks must also,
manage the volatility of cryptocurrency values
the pseudonymous nature of digital asset owners, and
the security of digital assets against loss or theft
in order to realize the earnings nad franchise benefits.
The agency stressed that if these challenges are not properly addressed, the purported earnings and franchise benefits from crypto may not materialize – and banks, as a result of the ratings, could suffer from
Reduced investor confidence
Higher borrowing costs, and
Increased difficulties in financing and growth.
Fitch aslo highlighted the financial system risks that could come from an increased adoption of stablecoins, ‘particularly if it reaches a level sufficient to influence the Treasury market.’
EXPERT OPINION | Stablecoins Are Expanding the Definition of What We Call ‘Money’
A similar analysis on USD-linked stablecoins in particular was also published in September 2025 by Moody’s Ratings. According to the expert analysis, digital currency adoption poses risks to the financial sector. Banks may face deposit erosion if individuals shift savings from domestic bank deposits into stablecoins or crypto wallets.
The report noted:
“High penetration of USD-linked stablecoins in particular can weaken monetary transmission, especially where pricing and settlement increasingly occur outside the domestic currency. This creates cryptoization3 pressures analogous to unofficial dollarization, but with greater opacity and less regulatory visibility.
Liquidity stresses in major stablecoins, such as the TerraUSD collapse in 2022 and USDC’s temporary depeg in 2023, highlight the potential for abrupt wealth effects and payment frictions when exposures are significant in the real economy.”
EXPERT ANALYSIS | ‘In Emerging Markets, High Penetration of USD-Linked Stablecoins in Particular, Weaken Monetary Transmission,’ Warns Moody’s Ratings
Fitch’s warning comes even as regulatory developments in the U.S. seek to make the crypto industry safer. Still, the credit-rating agency says the risks inherent in digital asset exposure remain a major concern for the stability and long-term viability of banks engaging heavily in crypto.
Fitch Ratings is one of the ‘Big 3’ credit rating agencies in the United States alongise Moody’s and S&P Global Ratings.
Ratings from these three firms carry significant weight in the financial world and usually impact how businesses are perceived or how investors view such businesses from an economic viability perspective.
INTRODUCING | Big 3 Global Credit Rating Agency, S&P Global Ratings, Launches Stablecoin Stability Assessment
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