Metropolitan Bank Holding Company (MCB) Withdraws From Cryptocurrency: A Closer Look

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

The world of cryptocurrency has been growing in leaps and bounds in recent years, with the market capitalization reaching new heights every day. This has led to many major banks and financial institutions dipping their toes into the world of cryptocurrency, but not every institution is confident about the potential risks and volatility associated with this emerging market.
One such institution is the Metropolitan Bank Holding Company (MCB), which recently submitted a document to the Securities and Exchange Commission (SEC) stating their intention to withdraw from the cryptocurrency-related vertical field. In this article, we will take a closer look at the reasons behind MCB’s decision and the potential impact of this move on the cryptocurrency market.

The Numbers Don’t Lie

According to the document submitted by MCB to the SEC, the bank’s total core deposits (excluding cryptocurrency customers) as of March 31, 2022, were $4.9 billion. This is a significant amount, and it shows that the bank has a strong customer base and a robust financial position. However, what’s interesting is that deposits from active institutions’ cryptocurrency related customers accounted for only 4% of the total deposits, or $217.6 million. This is a relatively small amount compared to the total deposits, and it highlights the fact that MCB’s exposure to the cryptocurrency market is minimal.

The Decision to Withdraw

Despite the relatively small exposure to the cryptocurrency market, MCB has decided to withdraw from this vertical field. The reason behind this decision is not entirely clear, but it’s believed that the bank is not confident about the potential risks associated with cryptocurrencies. This decision was almost completed, according to the announcement made by the bank in March 2022.
The volatility of the cryptocurrency market is one of the biggest concerns for mainstream financial institutions like MCB. The value of cryptocurrencies can fluctuate wildly in a short space of time, and this can wipe out any gains made by investors. In addition, there is the risk of fraud and cyber-attacks, which can result in significant financial losses.

Impact on the Cryptocurrency Market

It’s unclear what impact MCB’s decision will have on the cryptocurrency market, but it’s unlikely to cause any significant fluctuations. As mentioned earlier, the bank’s exposure to the cryptocurrency market is minimal, and thus, its decision to withdraw is not likely to have any significant impact. However, it does highlight the fact that mainstream financial institutions are still wary of the cryptocurrency market and its potential risks.

What Does the Future Hold?

Cryptocurrencies are still in their early stages, and the market is constantly evolving. Mainstream financial institutions will continue to evaluate the market carefully, and some may decide to take a cautious approach like MCB. However, there are also many institutions that are embracing cryptocurrencies and are investing heavily in this emerging market. Only time will tell which approach will prove to be more successful.
# Conclusion
The decision of Metropolitan Bank Holding Company to withdraw from the cryptocurrency-related vertical field is a reflection of the challenges faced by mainstream financial institutions when it comes to evaluating and embracing cryptocurrency. While the impact of their decision on the market is expected to be minimal, it highlights the complexities of this emerging market and the importance of making informed decisions. It’s important for investors to understand the risks and volatility associated with cryptocurrencies and to exercise caution when investing in this market.
# FAQs
Q: What is the total core deposit of MCB as of March 31, 2022?
A: The total core deposit (excluding cryptocurrency customers) of MCB as of March 31, 2022, was $4.9 billion.
Q: What percentage of the total deposit came from cryptocurrency-related customers?
A: Deposits from active institutions’ cryptocurrency-related customers accounted for 4% of the total deposits, or $217.6 million.
Q: Will MCB’s decision to withdraw from the cryptocurrency-related vertical field have a significant impact on the market?
A: No, it’s unlikely. MCB’s exposure to the cryptocurrency market is minimal, and thus, its decision to withdraw is not likely to have any significant impact.