The bank cited recent developments in the crypto industry as one of the reasons for the move.
Metropolitan Commercial Bank is to end crypto-related services because of “recent developments” in the digital asset industry.
One of the few U.S. banks to openly serve the crypto industry in recent years, the New York-based lender’s parent, Metropolitan Bank Holding (MCB), announced the decision to exit the crypto-asset related vertical on Monday.
“This decision follows a careful review by the Board of Directors and management and reflects recent developments in the crypto-asset industry, material changes in the regulatory environment regarding banks’ involvement in crypto-asset related businesses, and a strategic assessment of the business case for MCB’s further involvement at this time,” the bank said.
It is likely the bank is referring to the ongoing fallout from the collapse of crypto exchange FTX late last year and concerns that any financial firms servicing the industry will be subject to sterner regulatory oversight in the future as a result.
The bank said it expects “minimal financial impact from the exit.” Its four crypto clients accounted for around 1.5% of its total revenue and 6% of its deposits. These figures equate to around $1 million in revenue and $342 million in deposits, based on the firm’s Q3 2022 results reported in October.
Source: Crypto Insider