Metropolitan Bank Holding Corp (NYSE: MCB), one of the more active banks serving the U.S. market, has long been used by numerous cryptocurrency trading platforms. The New York Stock Exchange–listed bank has now announced it will stop all international wire transfers related to cryptocurrency.
Metropolitan Bank Holding Corp says goodbye to cryptocurrencies
A client of NYSE: MCB disclosed that the investment firm where they work received a notice from the bank stating it was “immediately ceasing all international wire transfers involving cryptocurrencies.” The bank added that it cannot verify compliance for international wires to or from digital asset accounts. Metropolitan Bank has been nicknamed “The Bitcoin Bank” because it has historically provided wire and deposit services for crypto-focused companies and investment firms, but this move marks a major shift in that role.
Widespread concern across the industry
Coinbase Wallet is among the companies that relied on NYSE: MCB for wires, deposits and its Shift Bitcoin debit card. With no guidance yet from the bank on when or whether services will be restored, the fate of customers’ bitcoins held in related accounts remains unclear. At face value, the announcement will have negative effects across the board. NYSE: MCB itself is likely to lose clients and experience slower growth. Investment firms that use the bank to move funds on behalf of international clients are placed in a precarious position—U.S. funds currently hold capital when transacting through the bank, and those investor funds may be stuck or delayed as a result.
The decision also raises broader questions about the potential freezing or cessation of services for non-U.S. fund transfers. Businesses that depend on cross-border movement of assets could face disruptions, compliance complications and liquidity constraints while they seek alternative banking partners or await clarification from the bank.
Industry participants will be watching for official statements from Metropolitan Bank and any regulatory guidance that could clarify the bank’s compliance stance and the timeframe for any resumption of crypto-related international transfers. In the meantime, affected firms will need to evaluate contingency plans, communicate with clients about potential delays, and consider alternative banking or custody arrangements to mitigate operational and reputational risk.