Blockchain Innovations: New Bank Launches and ETF Approvals

A group of former executives from the collapsed crypto-friendly Signature Bank has launched a new blockchain-powered bank named N3XT. According to Cointelegraph, N3XT aims to enable instant 24-hour payments using a private blockchain, allowing businesses to automate transactions through smart contracts.

The bank, operating under a Wyoming Special Purpose Depository Institution charter, will not offer lending services, and its reserves are backed one-to-one by cash or short-term U.S. Treasuries. N3XT’s CEO, Jeffrey Wallis, emphasized the importance of crypto innovations in banking to provide seamless payments for institutional clients.

The bank has raised $72 million in funding from notable venture capital firms including Paradigm and Winklevoss Capital. Meanwhile, in a significant move for institutional investment, the SEC has approved a leveraged ETF tied to the SUI token from 21Shares, allowing investors to gain amplified exposure to the Sui ecosystem.

This ETF is designed to track the price movements of SUI using derivatives rather than holding the tokens directly. This approval comes amid ongoing discussions regarding the risks associated with leverage in crypto markets, particularly following a significant leverage-driven sell-off earlier this month that liquidated approximately $19 billion in positions, as reported by Cointelegraph.

The SEC's approval of this ETF signals a shift towards greater institutional interest in cryptocurrency products.