Banking on crypto raises risks for traditional lenders

Singapore

AS more banks in South-east Asia plant their flags in the cryptocurrency sphere, some industry observers have sounded a note of caution over the trade-off between securing a first-mover advantage and dealing with reputational and operational risks.

A foothold in this nascent space could boost trading and custodial fees for traditional lenders over time. But revenues from these diversified streams are unlikely to be significant in the next few years, some experts said.