on the crypto
Cryptocurrencies, will the push come from small banks? Small credit institutions more aggressive than the big ones in the Bitcoin & co sector.
While Bank of America Corp. and JPMorgan Chase and Co. continue to refrain from processing cryptocurrency transactions, some smaller credit institutions such as the Silvergate Bank , Metropolitan Bank they took the opportunity to acquire a share in the vast emerging market of cryptocurrency-related activities, offering specific services for their customers.
In short, if the US example can be considered valid, it is possible that the smallest credit institutions are the ideal locomotive for the evolution of the cryptocurrency sector, while the largest banks seem to be more prudent and "slower" .
Silvergate Bank
Headquartered in San Diego, Silvergate Bank is a local credit institution with three branches: the company recently opened for cryptography in the last year, with a move that allowed it (or almost) to double its assets managed from $ 978 million to $ 1,7 billion USD.
Founded in 1988, SIlvergate Bank is one of the few banks open to cryptocurrency business in the United States, allowing companies to use their banking services: the result was that small branches were able to increase their deposits and revenues from commissions without having to open new offices or increase interest rates.
Metropolitan Bank
Similar fortune has been pursued by the Metropolitan Bank, so cryptocurrency has certainly been an innovative solution for its growth. In a recent interview with the Wall Street Journal, the CEO of Metropolitan Bank, Mark DeFazio, said:
We noticed a long time ago that the world of payments was changing
Metropolitan Bank Holding Corp. has more than tripled the income received from transaction fees since becoming a top operator for cryptographic value companies in the 2017.
Attention to risks
However, the risks should not be underestimated. Although cryptocurrency is indeed a viable outlet for small banks in order to obtain a competitive advantage, it is also true that unstable markets and the uncertain regulatory framework make the new class of digital assets a risky attempt for financial institutions, at any level .
Who will be right?
