Metropolitan Commercial Bank Fully Exits Crypto Vertical

Key Points:

• Metropolitan Commercial Bank will phase down its crypto asset sector, only a week after US authorities warned banks against placing too much leverage in crypto.
• This year, the bank does not hold cryptocurrency on its balance sheet and will wind down agreements with four large crypto-related clients.

Metropolitan Commercial Bank’s holding company is exiting the crypto asset vertical, highlighting the changing regulatory climate for banks participating in crypto, industry changes, and commercial potential.

The bank’s decision comes only a week after three US financial authorities advised against placing too much leverage on bitcoin. The volatile cryptocurrency market plummeted last year as a result of the high-profile failures of many large crypto businesses.

Metropolitan Commercial Bank does not have any crypto assets on its balance sheet and does not offer or sell them to consumers. The bank’s pullout from the crypto sector will have a minimal financial impact according to a statement. Four active institutional crypto-related clients account for 1.5% of overall revenues and 6% of total deposits at the business.

MCB’s interactions with these customers are limited to debit cards, payment, and account services. The Company has no outstanding loans to any of these clients, no crypto-assets on its balance sheet, and no crypto-assets to market or sells to its customers. MCB has begun the process of winding down its connections with these clients in a systematic manner, which it hopes to finish by 2023.

This decision will have no effect on clients’ existing capacity to transfer or receive payments from crypto-asset firms with which they choose to conduct business, or on MCB’s service to customers who do not have crypto-asset-related activities as their primary line of business.

Today’s announcement of our exit from the crypto-currency related asset vertical represents the culmination of a process that began in 2017, when we decided to pivot away from crypto and not grow the business, Crypto-related clients, assets and deposits have never represented a material portion of the Company’s business and have never exposed the Company to material financial risks. We remain focused on growing our core business and delivering superior value for all of our stakeholders through high-touch, relationship-driven banking, supported by financial discipline and sound risk management.

said Mark R. DeFazio, President and CEO of MCB

The bank offers debit cards, payment, and account services to its customers and has no outstanding debts. During 2023, the crypto sector is predicted to conclude client ties. Customers’ ability to send or receive payments from crypto firms will not be impacted by the shift away from crypto.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Website: coincu.com

Thana

Coincu News