Metropolitan Commercial Bank almost done cutting crypto-related services
According to a SEC filing, Metropolitan Commercial Bank is almost done terminating its crypto-related services.
The bank currently has $278.5 million in deposits tied to cryptos. The bank reported that its withdrawal from the crypto industry was nearly complete and that its core deposits, excluding crypto clients, amounted to $4.9 billion.
The metropolitan commercial bank closes crypto deals
According to a filing with the Securities and Exchange Commission (SEC), Metropolitan Commercial Bank is almost done with the crypto market.
Metropolitan Bank Holding (MBH), the parent company of the New York-based bank, said in January that it was discontinuing crypto-related services due to changes in the market and regulatory pressure. The decision followed the demise of the FTX crypto exchange.
In Q3 2022, four crypto clients that Metropolitan Bank handled generated around $1 million in revenue and 6% of the company’s total deposits, totaling $342 million.
Since the spectacular failure of three of the most significant banks in the United States—Silvergate Bank, Silicon Valley Bank, and Signature Bank—other U.S. institutions have hesitated to serve the crypto business.
Indeed, Provident Bancorp, another bank, cited the recent banking crisis’ main contributor—the crypto winter—as the main culprit.
“Over the past few months, the nation has witnessed a series of events that rocked the banking industry to its core. These occurrences occurred shortly after a bitcoin decline that impacted many enterprises, including several that we had backed through our programs for lending on digital assets.”
Joe Reilly and Carol Houle, co-CEOs, statement to shareholders.
As a result of the recent turmoil, several businesses involved with cryptos have been forced to forego the services of financial institutions altogether.
However, domestic banks like BNY Mellon which continue to work with clients involved with cryptos, have indicated that they are vigilant when working with new customers who may be vulnerable to cyber attacks on their digital assets.