Bitcoin, Crypto currency, Blockchain

USA: Metropolitan Bank too cozy with crypto investors

So far, the Credo of most of the financial Institute is: Blockchain please Yes, Bitcoin no thank you. In the USA, a “small” Bank.

The US-American Metropolitan Commercial Bank is in the banking world quite alone. The credit institution has no fear of contact with customers in the crypto industry, as an investor presentation. After all, 3.4 million US dollars, could occupy the Bank in the first quarter of this year only by your customers in the crypto area. To whom this amount as “Peanuts” appears, it should be remembered that the Metropolitan Commercial Bank is a relatively small Bank. With a total volume of 1.9 billion US dollars, the Bank only manages a fraction of the lift, for example, industry giants such as JPMorgan Chase (2017: > 2.5 trillion US dollars).

Nevertheless, the Bank was able to increase the growth of their non-interest income compared to the previous year by 300 percent – thanks in part to the clientele from the crypto industry.

To this, the Bitcoin financial services provider BitPay in addition to crypto exchange Coinbase. Both are using the Bank, among other things, for the settlement of their transactions with Bitcoin debit cards, which for those earning the nickname “Bitcoin Bank”. The epithet is somewhat misleading, however, handles the Metropolitan Bank, but also for their crypto customers only Fiat-transactions to have non-self-direct points of contact with crypto-currencies. Nevertheless, there are so far, in addition to the Metropolitan Bank, hardly any other lending institution, the crypto scene is so open-minded.

This is also due to the great growth potential of the industry. It is precisely the enormous increase in the interest rate independent income – for example, Transaction and account fees – some of the competition green with envy. For comparison: The 300-percent growth of the Metropolitan Bank industry is facing in this area, an average of only 7.9 percent.

Crypto transactions will be subject to United States limited

Who dares, wins: This is particularly true in the business with crypto currencies. The Metropolitan Bank is built to withstand the risks, so far successfully. This is partly due to the careful examination of new customers in the crypto industry; these have to satisfy the Compliance requirements of the Bank. On the other, open dialogue with the regulatory authorities is of Central importance for the risk management of the Bank. Add to that the fact that the Bank crypto conducts business only at the national. Rumors from the beginning of the year, this limitation was emerged from an international fraud case, denied the Bank in January.

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