Clarity in Credit

Crypto & Stablecoins: Reshaping Banks and Corporates

Episode Summary

In the latest episode of our “Clarity in Credit” podcast series, Arnaud Journois, Senior Vice President of European Financial Institution Ratings, and Chloe Blais, Vice President of European Corporate Ratings, Diversified Industries & Energy, are joined by Maureen Levelis, Vice President of North American Financial Institution Ratings and Scott Rattee, Senior Vice President and Sector Lead of Corporate Ratings to discuss digital currencies.

Episode Notes

Digital currencies have been catalysts for how we define and use money. In this episode, Morningstar DBRS analysts discuss two examples, cryptocurrencies and stablecoins, and how their growing prevalence affects both Financial Institutions and Corporates.

Key Highlights

Stablecoins, digital tokens pegged to assets like the U.S. dollar, have demonstrated rapid growth with increasing integration into payment systems as a quick and low-cost means of sending money across borders with 24/7 settlement, global accessibility, and efficiency. However, they lack the safety of deposit insurance and rely on the issuers’ management of reserves.
In the U.S., the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, signed into law in July 2025, sets a regulatory foundation for stablecoins. Major U.S. banks are now exploring their own stablecoins or forming a consortium to compete with private players and stay relevant in the digital finance space. While stablecoins offer efficiency and innovation in the financial system, they pose both opportunities and risks for banks, potentially disrupting deposit bases and payment fees.
The use of cryptocurrencies has started to move beyond simply being transactional in nature to being used for operational purposes such as treasury functions. Cryptocurrency treasury companies are using cryptocurrencies such as bitcoin as their primary corporate reserve currency.
Given the inherent volatility in cryptocurrency values, when a cryptocurrency represents most of a company's available on-balance-sheet capital, there can be issues with it as a reliable store of value and a unit of account, particularly in periods of either company-specific or macroeconomic stress.
In addition, some of the other primary credit risk considerations include factors such as a lack of clear regulatory oversight, liquidity risk, counterparty and security-level risks, and custodial considerations.

Related Content:

Stablecoins and U.S. Banks: A New Chapter in Financial Disruption (August 9, 2025), https://dbrs.morningstar.com/research/460729
Risky Business: Cryptocurrency Treasury Strategy May Increase a Company's Credit Risk Profile (August 21, 2025), https://dbrs.morningstar.com/research/455943

Catch up on these topics and more thought leadership from across the Fundamental Ratings teams and around the globe via our monthly Consider Credit newsletter: https://dbrs.morningstar.com/research/458585.

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