Metropolitan Commercial Bank’s holding company will exit its crypto asset vertical, pointing to the shifting regulatory environment for banks involved in crypto, developments in the industry and business opportunities.
The bank’s shift comes a week after a trio of U.S. banking regulators warned about putting too much leverage in cryptocurrency. The volatile crypto market plunged last year amid the high-profile collapses of several major crypto firms.
Metropolitan Commercial Bank does not hold crypto on its balance sheet, and does not market or sell crypto assets to customers. The bank will have “minimal financial impact” from exiting its crypto vertical, it said in a statement. The firm has four active institutional crypto-related clients, accounting for 1.5% of total revenues and 6% of total deposits.
“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,” Metropolitan Commercial Bank President and CEO Mark DeFazio said.
The bank provides debit card, payment and account services to its clients and does not have any outstanding loans. The crypto vertical is expected to close relationships with clients during 2023. The move away from crypto will not affect customers’ ability to send or receive funds from crypto companies.
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