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Fintech

Moody’s warns blockchain may pose systemic risk to structured finance

The rating agency welcomes potential efficiency gains but warns about concentration risk

The use of blockchain technology in certain complex financial markets could create a risk of systemic crisis, according to Moody’s.

In a new report, the rating agency highlights the growing attraction of blockchain technology — the software that underpins cryptocurrencies such as bitcoin — to banks and others involved in so-called securitisations, or the conversion of debts and other financial assets into easily tradeable forms.

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