Metropolitan Commercial Bank’s holding company will exit its crypto asset vertical, pointing to the shifting regulatory environment for banks involved in crypto, developments in the industry and business opportunities.

The bank’s shift comes a week after a trio of U.S. banking regulators warned about putting too much leverage in cryptocurrency. The volatile crypto market plunged last year amid the high-profile collapses of several major crypto firms. 

Metropolitan Commercial Bank does not hold crypto on its balance sheet, and does not market or sell crypto assets to customers. The bank will have “minimal financial impact” from exiting its crypto vertical, it said in a statement. The firm has four active institutional crypto-related clients, accounting for 1.5% of total revenues and 6% of total deposits. 

(by Stephanie Murray)