Metropolitan Bank heading for crypto exit

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The Metropolitan Commercial Bank is to end crypto-related services due to “recent developments” in the digital asset industry.

One of the few US banks to openly serve the crypto industry in recent years, the lender’s New York-based parent company, Metropolitan Bank Holding (MCB), on Monday announced its decision to exit the crypto-related vertical. assets.

“This decision follows careful consideration by the board and management and reflects recent developments in the crypto-asset industry, significant changes in the regulatory environment regarding the involvement of banks in related activities to crypto-assets, and a strategic assessment of the business case for MCBs getting more involved right now,” the bank said.

The bank is likely to be referring to the ongoing fallout from the collapse of crypto exchange FTX late last year and fears that all financial firms serving the industry will face greater regulatory scrutiny. strictly in the future.

The bank said it expects “minimal financial impact from the exit.” His four crypto clients accounted for around 1.5% of his total revenue and 6% of his deposits. Those numbers equate to about $1 million in revenue and $342 million in deposits, based on the company’s third-quarter 2022 results released in October.

Read more: Crypto Bank Silvergate Downgraded by Wall Street Banks, Moody’s After Q4 Results, Stocks Crash

UPDATE (January 9, 12:48 UTC): Adds approximations for MCB’s crypto-related earnings and deposits, along with additional context.

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