Regional lender Metropolitan Bank to exit crypto assets vertical

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(Reuters) – Metropolitan Bank Holding Corp said on Monday it would exit the cryptocurrency-related assets vertical as the digital asset industry sinks deeper into a slump.

MCB said it expects minimal financial impact from the exit. It has four active institutional clients linked to crypto-assets which represent around 1.5% of its income and 6% of its deposits.

A group of crypto firms, struggling with an industry-wide downturn that worsened with the collapse of major exchange FTX, filed for bankruptcy in recent months.

The woes of the crypto world have continued in a year marked by plummeting filings, layoffs, and multiple legal hurdles.

Last week, crypto-focused bank Silvergate Capital Corp reported a sharp drop in crypto-related deposits in the fourth quarter as investors spooked by the collapse of FTX withdrew more than $8 billion.

MCB said it has no outstanding loans to any of its clients related to crypto-assets and does not hold any crypto-assets on its balance sheet.

(Reporting by Manya Saini in Bengaluru; Editing by Shinjini Ganguli)

Sources

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