The Metropolitan Commercial Bank, one of the few crypto friendly banks in the US, has referred to its crypto clientele as ‘pioneers’ and are not thinking of parting ways with the industry any time soon.
The bank makes it easier for crypto exchanges and investors to quickly move fiat to the crypto market and has made a fortune from the niche.
As part of data for an investor presentation, the firm revealed it had reached an all-time $5.4 million high in non-interested related profits.
This figure is unsurprisingly contributed to by the $3.4 million that the bank accrued from cash management and foreign exchange fee for its growing crypto client base.
Nick Rosenberg, who heads the technology department of the New York division of the Metropolitan Bank, mentioned that the bank is interested in ‘growing the vertical’ (crypto-clientele) with new opportunities also on offer.
He said “We’ve learned that it’s a serious industry. There are some very smart people involved. There are some very interesting ideas coming out that could really change the way people do business.”
High Touch – High Rewards
There is a few number of crypto friendly banks in the US.
This has been hugely down to banks struggling to meet up with anti-money laundering requirements.
Providing data on customers cash inflow and outflow is almost impossible given the anonymous nature of cryptocurrency transactions, and this has been a major barrier for commercial banks.
The Metropolitan Bank, however, uses a unique formula as it doesn’t deal directly with the tokens but simply manages the funds that clients can convert to tokens at anytime.
Even though this is ‘a high-touch relationship’ requiring careful client acquisition and open communication with fiat regulatory bodies, it is one that has paid off for the corporation and could do same for others.
It is high time banks turn from being crypto-hostile to crypto-friendly.
Over a period when the total increase in non-interest profit for US banks rose by a mere 7.9%, the Metropolitan Bank recorded a whopping 300% and will no doubt reach new heights as its crypto clientele continues to grow.