TechFlow news, December 4 — According to Reuters, former executives from Signature Bank are launching a new blockchain-based bank called N3XT, focused on facilitating instant, round-the-clock dollar payments. The bank was founded by Scott Shay, founder and former chairman of Signature Bank, with Jeffrey Wallis, former director of digital assets and Web3 strategy, serving as CEO.
N3XT will operate globally under a Wyoming special purpose depository institution license and will not engage in any lending activities. Each dollar deposited will be backed by cash or short-term U.S. Treasury securities, and the bank will publish daily reports of its reserve holdings. Unlike Signature Bank, N3XT will not have Federal Deposit Insurance Corporation (FDIC) insurance.
Wallis said N3XT initially plans to focus on digital asset clients, many of whom have already begun onboarding. Signature Bank previously collapsed in March 2023.
