The Rise and Fall of Cryptocurrency in Metropolitan Bank Holding Company

According to reports, according to a document submitted by Metropolitan Bank Holding Company (MCB) to the Securities and Exchange Commission (SEC), its total core deposits (excluding cryptocurrency customers) as of March 31 were $4.9 billion. Previously, the announcement to withdraw from the cryptocurrency related vertical field was almost completed, with deposits from active institutions’ cryptocurrency related customers accounting for 4% of the total deposits, or $217.6 million, from March 2022

Metropolitan Bank: Leaving the vertical field related to encryption is almost complete

Are cryptocurrencies losing their popularity? Recent reports suggest a decline in cryptocurrency investments made by Metropolitan Bank Holding Company (MCB). As per the document filed with the Securities and Exchange Commission (SEC), the total core deposits (excluding cryptocurrency customers) as of March 31 were $4.9 billion. This article covers MCB’s decision to withdraw from the cryptocurrency vertical field and its impact on the bank and customers.

History of Metropolitan Bank Holding Company in Cryptocurrency

To start with, Metropolitan Bank Holding Company has been a popular choice for cryptocurrency investors due to their flexible policies and easy access. In 2018, the bank announced that it had launched a cryptocurrency-based banking platform, enabling customers to easily convert their cryptocurrency into US dollars with ease. This move proved to be highly successful with deposits from active institutions’ cryptocurrency-related customers accounting for 4% of the bank’s total deposits, accounting for $217.6 million.

The Decision to Withdraw from Cryptocurrency

However, the cryptocurrency market is highly volatile and risky. Metropolitan Bank Holding Company experienced considerable losses in the cryptocurrency vertical field, leading to an internal decision to withdraw all its cryptocurrency-related accounts. As per their recent reports, the bank has stopped accepting any new cryptocurrency customers, and the announcement to withdraw from the cryptocurrency-related vertical has almost been completed.

Impact on Metropolitan Bank Holding Company and Customers

The decision to withdraw from cryptocurrency has had a significant impact on the bank’s balance sheet, with a significant reduction in assets. However, the bank has stated that it was a step taken to streamline their operations and reduce the risks associated with the highly unpredictable cryptocurrency vertical. The bank has assured its customers that their deposits are safe, and the withdrawal would only result in a change in the type of deposits accepted.
Customers who had their deposits converted to US dollars have not been affected by the bank’s decision to withdraw from the cryptocurrency-related vertical. However, customers who still have cryptocurrency assets with the bank have been given a timeline to withdraw their assets and convert them to US dollars.

Conclusion

In conclusion, the decision to withdraw from the cryptocurrency vertical field by Metropolitan Bank Holding Company was a necessary step to reduce and control the risk involved in dealing with cryptocurrencies. While it may have caused some disruption to its customers, the bank has continued to maintain its position as a trusted financial institution.

FAQs

1. Is Metropolitan Bank Holding Company completely shutting down its cryptocurrency services?
– No, the bank has stated that it has only withdrawn from the cryptocurrency-related vertical and will continue to accept and manage other types of deposits.
2. Will customers lose their deposits because of the bank’s decision to withdraw from cryptocurrency?
– No, the bank has confirmed that deposits are secure and customers can withdraw their money converted to US dollars.
3. Are other banks also following Metropolitan Bank Holding Company’s footsteps in the cryptocurrency market?
– Yes, other banks with a significant cryptocurrency customer base have also been reducing their cryptocurrency-related accounts, citing the risks involved. The future of cryptocurrencies in the banking industry is uncertain due to regulatory challenges, market volatility, and fluctuating value.
#