The holding company for Metropolitan Commercial Bank, Metropolitan Bank Holding Corp. (NYSE: MCB), announced on Monday that it will completely exit the crypto-asset industry. It cited recent developments in the industry and modifications to the regulatory framework governing the banks’ involvement in crypto-asset related businesses.
The business case for Metropolitan’s continued industry participation was strategically evaluated as well.
The bank currently has four institutional crypto-asset clients that are active and account for about 1.5% of its total revenues and 6% of its total deposits. According to Metropolitan, these ties are confined to the provision of debit cards, payment, and account services; the bank has no loans outstanding to any of these clients and does not have any crypto assets on its balance sheet.
Bank does not promote or sell cryptocurrency to its clients.
In light of its decision to leave the crypto-asset market, the bank has started the process of terminating its business dealings with these clients, and it anticipates that it will be finished in 2023.
The decision, according to the bank, will not have an impact on customers’ current ability to send money to or receive money from cryptocurrency companies they choose to do business with. It also won’t have an impact on the bank’s ability to serve customers whose primary line of business is unrelated to cryptocurrency.
According to Mark R. DeFazio, President, and CEO of MCB, the announcement of their exit from the cryptocurrency-related asset vertical marks the conclusion of a process that started in 2017 when they decided to pivot away from crypto and not develop the business.
He went on to say that crypto-related clients, assets, and deposits have never represented a significant portion of the bank’s business and have never exposed the institution to significant financial risks.
