One of the first banks to enter the cryptocurrency market is pulling out, citing “recent changes” in the industry.
One of the original banks to enter the cryptocurrency market is exiting the sector.
The holding company of Metropolitan Commercial Bank said on Monday that the corporation will discontinue all cryptocurrency-related offerings this year.
The New York-based bank, which oversees assets worth roughly $6.4 billion, cited “recent changes” in the sector and a shifting regulatory landscape as factors in their decision to quit the emerging market.
According to Mark DeFazio, president, and CEO of Metropolitan Commercial Bank, “Today’s news of our exit from the crypto-currency related asset vertical reflects the culmination of a process that began January 2017, when we decided to change course and stop growing firm.
The bank has no bitcoin on its balance sheet, and it has no overdue debts to any of its cryptocurrency-related clients.
As per Metropolitan Commercial Bank, the adjustment will have “minimal financial impact.” It has four active crypto-related clients, who collectively account for 6% of all deposits and about 1.5% of total income.
“Crypto-related customers, assets, and deposits have never formed a significant portion of the Company’s business or exposed the Company to material financial problems,” claims DeFazio.
Metropolitan Commercial Bank was one of the first reputable financial institutions to enter the growing industry.
It launched a crypto debit card as one of its projects in 2018.
The bank’s chief technology officer, Nick Rosenberg, told CoinDesk in 2018 that the company was “definitely extremely interested in building this area.” “We now know it’s a really serious sector. Some very intelligent individuals are participating. There are some extremely intriguing concepts emerging right now that might radically alter how people conduct business.”
How Do Crypto Banks Work
Users can quickly and securely buy, sell, and hold digital assets using cryptocurrency banking and investment applications.
In contrast to standalone cryptocurrency wallets, crypto banks often offer prepaid debit cards, federally insured bank accounts, and cryptocurrency wallets. Additionally, providers of crypto banking services are frequently regulated.
Bitwala, Coinbase, and Wirex are pioneers in the field of cryptocurrency banks and among the first to provide a full-service cryptocurrency banking experience. However, as the old world of banking gives way to the brave new world of cryptocurrency, the number of crypto banks is quickly expanding – both domestically and internationally.
Making an account at a crypto bank may be the simplest and safest way to get started for novice cryptocurrency investors.
How Can Crypto Be Used
Cryptocurrencies are becoming used for more than just buying, selling, and trading. Companies are providing solutions for cryptocurrency investors to use their coins more effectively. Innovative uses for your cryptocurrency include the following:
- Borrow money or stablecoins backed by cryptocurrency utilizing these loans.
- Gain interest on your cryptocurrency: Some businesses offer interest that is returned to your account by staking or exchanging cryptocurrency.
- Use your cryptocurrency to make purchases: Get a card to use your cryptocurrency.
- Some cards that let you use your cryptocurrency to make purchases also let you earn cashback and rewards.
- Add cryptocurrency to your portfolio of retirement assets: To invest in a conventional Roth or SEP IRA using cryptocurrencies, open a crypto IRA account.
What is Metropolitan Bank? How about Metro Bank?
The fourth-largest bank in the Philippines is The Metropolitan Bank and Trust Company (PSE: MBT), also known as Metrobank. It offers a variety of financial services, including regular banking and insurance. It belongs to GT Capital Holdings Inc.’s division that handles retail and commercial banking.
Exactly what kind of bank is Metropolitan Commercial Bank?
Metropolitan Commercial Bank is an equal opportunity lender, a New York State chartered bank, and a member of the FDIC.