Former Signature Bank Executives Launch N3XT: A Blockchain-Powered Full-Reserve Bank for Programmable Payments

Former Signature Bank Executives Launch N3XT: A New Era in Blockchain Banking

October 5, 2023

In a bold move signaling the evolution of banking in the digital age, a group of former executives from Signature Bank has unveiled N3XT, a blockchain-powered, full-reserve bank designed to offer programmable U.S. dollar payments. The announcement, made on Thursday, comes just over two years after the abrupt closure of Signature Bank in March 2023, a casualty of the banking crisis that followed the collapse of Silicon Valley Bank.

N3XT operates under a Wyoming Special Purpose Depository Institution (SPDI) charter, distinguishing itself from traditional banks by adopting a “narrow bank” model. This means that every dollar deposited is backed one-to-one by cash or short-term U.S. Treasuries, with daily disclosures ensuring transparency. Unlike conventional banks, N3XT does not lend out deposits, focusing instead on providing instant payment settlements through a private blockchain system.

Leading the charge is CEO and President Jeffrey Wallis, who previously served as the Director of Digital Asset Strategy at Signature Bank. He is joined by Scott Shay, co-founder of Signature and the architect behind its popular crypto payments platform, Signet. Together, they aim to recreate and enhance the services that once made Signature a favorite among crypto businesses.

N3XT has already garnered significant backing from prominent venture capital firms, including Paradigm, HACK VC, and Winklevoss Capital, the investment firm founded by Gemini exchange creators Tyler and Cameron Winklevoss. The bank has successfully raised $72 million across three funding rounds, with the latest round concluding in October, according to Crunchbase data.

The launch of N3XT comes as the financial landscape continues to adapt to the demands of a 24/7 global economy. “We’re applying crypto innovations to banking to deliver instant, programmable payments for institutional clients,” Wallis stated. “Our platform gives businesses the control and reliability they need.”

N3XT’s architecture is designed to facilitate automation in financial operations, allowing businesses to streamline processes such as supplier payments and collateral adjustments without the constraints of traditional banking hours. The firm has already attracted clients from diverse sectors, including crypto, shipping, logistics, and foreign exchange, boasting a “robust pipeline” of incoming customers.

As the banking industry grapples with the lessons learned from the collapse of Signature Bank, N3XT represents a forward-thinking approach that seeks to harness the power of blockchain technology while prioritizing stability and transparency. With its innovative model, N3XT is poised to redefine the banking experience for businesses navigating the complexities of the modern financial landscape.