Metropolitan Commercial Bank Is Almost Done Exiting Crypto Business

The New York-based bank has only $278.5 million in crypto-related deposits left, according to a filing.

AccessTimeIconApr 20, 2023 at 3:43 p.m. UTC
Updated May 9, 2023 at 4:12 a.m. UTC

Metropolitan Commercial Bank is close to exiting completely from the cryptocurrency market, with only $278.5 million in crypto-related deposits left, according to a filing with the Securities and Exchange Commission (SEC) from April 18.

“Our previously announced exit from the crypto related vertical is almost complete,” the filing states, noting that its total core deposits, excluding crypto clients, were $4.9 billion at March 31.

  • Most Influential 2023: The People Who Defined the Year in Crypto
    07:58
    Most Influential 2023: The People Who Defined the Year in Crypto
  • The 'Real Question' About Sam Bankman-Fried's Trial is What Happens Next: Kevin O'Leary
    00:36
    The 'Real Question' About Sam Bankman-Fried's Trial is What Happens Next: Kevin O'Leary
  • How Decentralization Cultivates Community
    05:08
    How Decentralization Cultivates Community
  • How Decentralized Threads Build Web3
    05:40
    How Decentralized Threads Build Web3
  • The New York-based bank’s parent company, Metropolitan Bank Holding (MBH), announced in January that it was terminating crypto-related services after recent developments in the industry and regulatory pressure. The decision came shortly after former-crypto exchange FTX collapsed. Its founder, Sam Bankman-Fried, is facing multiple fraud charges.

    Metropolitan Bank served four crypto clients, which accounted for around 1.5% of its total revenue, or around $1 million, and 6% of its total deposits which amounted to $342 million, according to the firm’s Q3 2022 results.

    U.S. banks have been cautious about serving crypto industry after the spectacular collapse of three of the most prominent banks - Silvergate Bank, Silicon Valley Bank and Signature Bank.

    In fact, another bank - Provident Bancorp - blamed the crypto winter as the primary cause for the recent banking crisis. "Over the past few months the country has witnessed a chain of events that shook the foundations of the banking industry," wrote co-CEO Joe Reilly and Carol Houle in a shareholder's letter dated April 18. "These events came on the heels of a cryptocurrency downturn that affected many businesses, including some that we supported through our digital asset lending initiatives," they wrote.

    This recent crisis have also left many crypto-related companies unbanked, with several firms trying to move their banks offshore. Meanwhile, some of the domestic banks, including BNY Mellon, which are still servicing crypto-related clients, said they are taking a slower approach to taking on newer digital asset-exposed clients.

    Edited by Aoyon Ashraf.

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Helene Braun

    Helene is a New York-based reporter covering Wall Street, the rise of the spot bitcoin ETFs and crypto exchanges. She is also the co-host of CoinDesk's Markets Daily show. Helene is a graduate of New York University's business and economic reporting program and has appeared on CBS News, YahooFinance and Nasdaq TradeTalks. She holds BTC and ETH.