Research on Risk Management Published by Researchers at Tarleton State University (Asymmetric and Time-Varying Connectedness of FinTech with Equities, Bonds, and Cryptocurrencies: A Quantile-on-Quantile Perspective): Insurance – Risk Management

CDC & FDA Daily

2026 JAN 06 (NewsRx) -- By a News Reporter-Staff News Editor at CDC & FDA Daily -- Fresh data on risk management are presented in a new report. According to news reporting out of Stephenville, Texas, by NewsRx editors, research stated, “This study employs a quantile-on-quantile connectedness approach to analyze the asymmetric, distribution-dependent, and time-varying spillovers between FinTech indices and traditional financial markets.”

The news reporters obtained a quote from the research from Tarleton State University: “The results show that spillovers are concentrated in the distribution tails, with FinTech indices exhibiting strong co-movements with equities and Bitcoin under extreme conditions, while linkages with U.S. Treasury bonds are weaker and often inverse. Net connectedness analysis reveals that the S&P 500 and Bitcoin act as the primary transmitters of shocks into FinTech indices, whereas Treasuries generally serve as receivers, except during stress episodes when safe-haven flows or heightened credit risk reverse the direction of spillovers. The dynamic TCI (Difference between the total direct connectedness and the reverse total connectedness) further demonstrates that FinTech indices serve as net transmitters in stable markets but become receivers during crises such as the COVID-19 pandemic, the Federal Reserve’s tightening cycle of 2022-2023, and the FTX-driven crypto collapse. Segmental heterogeneity is also evident: distributed ledger firms are highly sensitive to cryptocurrency dynamics, alternative finance providers respond strongly to both equity and bond markets, and digital payments firms are primarily influenced by equity spillovers. Overall, the findings underscore FinTech’s dual role-transmitting shocks during tranquil periods but amplifying systemic vulnerabilities during crises.”

According to the news editors, the research concluded: “For investors, diversification benefits are state-dependent and largely disappear under adverse conditions. For regulators and policymakers, the results highlight the systemic importance of FinTech-equity and crypto-ledger linkages and the need to integrate FinTech exposures into macroprudential surveillance to contain volatility spillovers and safeguard financial stability.”

For more information on this research see: Asymmetric and Time-Varying Connectedness of FinTech with Equities, Bonds, and Cryptocurrencies: A Quantile-on-Quantile Perspective. Risks, 2025,13(12):246. (Risks - http://www.mdpi.com/journal/risks). The publisher for Risks is MDPI AG.

A free version of this journal article is available at https://doi.org/10.3390/risks13120246.

Our news journalists report that more information may be obtained by contacting Mohammad Sharif Karimi, College of Business, Tarleton State University, 1333 W. Washington St., Stephenville, TX 76401, United States. Additional authors for this research include Omar Esqueda, Naveen Mahasen Weerasinghe.