Metropolitan Commercial is almost done with crypto as banks continue to be wary of the industry

[ad_1]

The Metropolitan Commercial Bank is on the verge of exiting the cryptocurrency market entirely with just $278.5 million in crypto-related deposits remaining, according to a filing with the Securities and Exchange Commission (SEC) on 18 april.

Our previously announced exit from the crypto-related vertical is nearly complete, the filing says, noting that its total core deposits, excluding crypto clients, were $4.9 billion as of March 31. .

The New York-based banks’ parent company, Metropolitan Bank Holding (MBH), announced in January that it was ending crypto-related services after recent developments in the industry and regulatory pressure. The decision came shortly after former crypto exchange FTX collapsed and its founder, Sam Bankman-Fried, faces multiple fraud charges.

Metropolitan Bank served four crypto clients which accounted for about 1.5% of its total revenue, about $1 million and 6% of its total deposits which amounted to $342 million, according to the company’s third-party results. quarter 2022.

US banks have been cautious about servicing the crypto industry, following the dramatic collapse of three of the most prominent banks – Silvergate Bank, Silicon Valley Bank and Signature Bank.

In fact, another bank – Provident Bancorp – blamed the crypto winter as the main cause of the recent banking crisis. “Over the past several months, the country has witnessed a series of events that have shaken the foundations of the banking industry,” co-CEOs Joe Reilly and Carol Houle wrote in a letter to shareholders dated April 18. downturn in cryptocurrency that has affected many businesses, including some we have supported through our digital asset lending initiatives,” they wrote.

This recent crisis has also left many crypto-related businesses bankless and has seen several companies try to move their banks overseas. Meanwhile, some of the national banks, including BNY Mellon, which still serve crypto-related customers, said they were taking a slower approach to supporting new customers exposed to digital assets.

[ad_2]