Ex-Signature Bank Executives Launch Blockchain-Powered Bank N3XT

A group of former executives from the collapsed crypto-friendly Signature Bank has launched a new blockchain-based bank called N3XT. According to Cointelegraph, N3XT aims to enable instant 24-hour payments using a private blockchain and offers programmable payments through smart contracts.

CEO Jeffrey Wallis, formerly of Signature Bank, stated, 'Money should move as seamlessly as information.' N3XT operates under a Wyoming Special Purpose Depository Institution charter and will not provide lending services.

The bank's reserves are backed one-to-one by cash or short-term U.S. Treasuries, and it plans to disclose its reserve holdings daily. N3XT has raised $72 million in funding from investors including Winklevoss Capital and Paradigm, as per CoinDesk.

The new bank targets clients from various sectors, including crypto, foreign exchange, and logistics, with a robust pipeline of incoming customers. Wallis emphasized that their platform is designed for a 24/7 global economy, allowing businesses to automate payments without waiting for traditional banking hours.

The launch follows the March 2023 closure of Signature Bank, which faced issues related to uninsured deposits and weak risk controls, as highlighted by the Federal Deposit Insurance Corporation at that time.