April

Metropolitan Commercial Bank is on the verge of a complete departure from the cryptocurrency market, with only $278.5 million in crypto-related deposits remaining, according to an April 18 <a href="https://www.sec.gov/Archives/edgar/data/1476034/000155837023006144/mcb-20230418xex99d1.htm" rel="nofollow noopener" target="_blank">SEC filing</a>. The bank stated that its exit from the crypto sector is nearly finished, while its total core deposits, excluding crypto clients, stood at $4.9 billion as of March 31.



<h2 id="bank-8217-s-decision-follows-ftx-8217-s-collapse-and-regulatory-pressure">Bank&#8217;s decision follows FTX&#8217;s collapse and regulatory pressure</h2>



The New York-based bank&#8217;s parent company, Metropolitan Bank Holding (MBH), <a href="https://www.cryptopolitan.com/metropolitan-bank-wants-nothing-with-crypto/" data-type="post" data-id="254718">announced</a> its decision to terminate crypto-related services in January following industry developments and regulatory pressures.



This came shortly after the collapse of former crypto exchange FTX and multiple fraud charges against its founder, Sam Bankman-Fried.



The spectacular collapse of <a href="https://www.cryptopolitan.com/silvergate-signature-firms-swiss-banks/" data-type="post" data-id="280835">Silvergate Bank</a>, Silicon Valley Bank, and Signature Bank has made U.S. banks increasingly cautious about serving the crypto industry.



Provident Bancorp&#8217;s co-CEOs Joe Reilly and Carol Houle, in an April 18 shareholder&#8217;s letter, attributed the recent banking crisis to the cryptocurrency downturn, which has left many crypto-related companies unbanked and prompted several firms to seek offshore banking options.



Meanwhile, domestic banks like BNY Mellon continue to service crypto clients but are adopting a more cautious approach when onboarding new digital asset-exposed clients.

New York-based Metropolitan Commercial Bank nears full crypto market exit amid industry turmoil

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