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.

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.


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

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

Helene is a U.S. markets reporter at CoinDesk, covering the US economy, the Fed, and bitcoin. She is a recent graduate of New York University's business and economic reporting program.

Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to to register and buy your pass now.