According to a report from Reuters, Metropolitan Commercial Bank (MCB) is going to stop offering services linked to cryptocurrencies as a result of recent events in the cryptocurrency industry.
The bank says:
“Today’s announcement of our exit from the crypto-currency related asset vertical represents the culmination of a process that began in 2017, when we decided to pivot away from crypto and not grow the business”
The financial institution now serves four active institutional customers who are involved with cryptographic assets. Collectively, these clients are responsible for around 1.5% of total revenues and 6% of total deposits.
The scope of MCB’s involvement with these customers is restricted to the provision of services relating to debit cards, payments, and accounts. The business does not have any outstanding loans to any of these customers, does not maintain any cryptocurrency assets on its balance sheet, and does not promote or sell cryptocurrency assets to its customers.
The bank has started the process of terminating its business agreements with these customers in a methodical manner, and it anticipates that this process will be finished sometime during the year 2023.
According to MCB, this determination will not have any impact on customers’ existing capabilities to send funds to or receive funds from crypto-asset companies with which they choose to do business, nor will it have any impact on the service that it provides to customers whose primary line of business does not involve crypto-asset related activity.
“We remain focused on growing our core business and delivering superior value for all of our stakeholders through high-touch, relationship-driven banking, supported by financial discipline and sound risk management.”
The New York City-based bank offers business, commercial, and personal banking products and services to small, middle-market, corporate, municipal, and wealthy clients.
