(Reuters) – Metropolitan Bank Holding Corp 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 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)
