Regional lender Metropolitan Bank to exit crypto-related asset vertical

Metropolitan Bank Holding

09/01/2023 12:45

Jan 9 (Reuters) - Metropolitan Bank Holding Corp  MCB.N 
said on Monday it will exit the cryptocurrency related asset
vertical, as the digital assets industry slips deeper into a
crisis. 
    MCB said it expects minimal financial impact from the exit.
It has four active institutional crypto-asset related clients
that account for about 1.5% of its revenues and 6% of deposits.
    A clutch of crypto firms, gripped by an industry-wide
downturn that has deepened with the collapse of major exchange
FTX, has filed for bankruptcy protection in recent months. 
    The crypto world's woes have continued into this year marked
by plunging deposits, layoffs and multiple legal hurdles.   
    Last week, crypto-focused bank Silvergate Capital Corp
 SI.N  reported a sharp drop in fourth-quarter crypto-related
deposits as investors spooked by the collapse of FTX pulled out
more than $8 billion. 
    MCB said it has no loans outstanding to any of its
crypto-asset related clients, and that it does not hold
crypto-assets on its balance sheet. 
 (Reporting by Manya Saini in Bengaluru; Editing by Shinjini
Ganguli)
 ((Manya.Saini@thomsonreuters.com;))