Who’s The Bank?
One forward-thinking bank in the United States is certainly flying the flag for Cryptocurrencies. Metropolitan Commercial Bank is one of the only banks that is, especially when it comes to Bitcoin. The bank is currently dealing with millions of dollars worth of Cryptocurrencies and is actively on the lookout for more clients and Cryptocurrency firms.
It’s Paying Off
The bank’s team has realized just how important and actually life-changing the Cryptocurrency industry is. It is fully aware of the impact that this new digital economy can have on businesses and business practices. The bank is enjoying working with their new customers which include hedge funds, crypto exchanges, and crypto investors to name a few. Although the bank itself is not actually involved in dealing with the Cryptocurrencies, it only deals in fiat for its clients; it is still seeing the huge benefits from the market. The bank has seen its income soar from its involvement in the Cryptocurrency industry and working with these new clients. In the first quarter of 2018 alone, $3.4 million was obtained from cash management and foreign exchange. This is a massive 300% jump from the same time frame in 2017. Not only is this an amazing figure for the bank but also for the financial industry in the United States, where countrywide the increase in the same time frame was a mere 7.9%. And this is an even more impressive statistic when you consider that Metropolitan Commercial Bank is not a global bank, only a small community bank.
The Risks Involved
Cryptocurrency firms are really struggling worldwide to find financial institutions to support them. However, while the majority of banks are refusing the take on the risk of dealing with Cryptocurrencies, Metropolitan Commercial Bank is certainly enjoying its success. It is not just the financial risk, which is stressful for most banks but also the lack of regulation in this new generation market. When it comes to money laundering, there are rules in place that stipulate that banks have to be able to trace transactions and the parties involved in these. However, as we all know, this is a really difficult task to achieve with Blockchains. The difference with the Metropolitan Commercial Bank is that although it is aware of the risks involved, it is willing to take these risks. The bank does restrict the clients that it takes on board to only that those are serious about compliance. The bank also remains in touch with regulators to make sure that everything is running as smoothly as it should be. Ensuring that the regulators are relaxed about the banks own controls and that every step has been taken to reduce risk as much as possible is a huge step.
It is still a mystery when you look at the figures above as to why banks in the United States are still not getting involved in the Cryptocurrency industry. But nothing has really changed in the last few years. Until confidence has grown with the digital economy Cryptocurrency firms are still going to find it tough to find banks that will work them. And who knows how long that will take.