Metropolitan Commercial Bank Nears Completion of Exit from the Crypto Industry

Metropolitan Commercial Bank is nearing the completion of its previously announced exit from the cryptocurrency market, the bank said in a report to the SEC.

Deposits from clients with digital assets at the institution as of March 31 fell to 4% of total deposits and amounted to $217.6 million.

In January, the bank’s parent company, Metropolitan Bank Holding, announced its exit from the cryptocurrency sector. The holding company said the move was justified by ‘recent events in the industry,’ changes in the regulatory environment, and economic rationale.

“Today’s announcement about our exit from the cryptocurrency-asset vertical marks the culmination of a process that began in 2017, when we decided to abandon cryptocurrency and not develop this business,” said then-president and CEO Mark DeFazio.

Metropolitan Bank Holding noted that it expects a ‘minimal financial impact’ from the implementation of the decision.

For the first quarter, the holding reported net income of $25.1 million.

In February, the WSJ noted that banks are cutting ties with crypto firms due to possible regulatory crackdowns. Regulators threaten to separate digital assets from the traditional financial system. The catalyst for supervisory concerns was the collapse of FTX and the events it triggered in the industry.

Earlier in January, one of the best-known banks linked to the crypto sector—Signature—severed ties with Binance’s international business.