Former executives from the defunct crypto-friendly Signature Bank have launched N3XT, a new blockchain-powered, full-reserve bank. Operating under a Wyoming SPDI charter, N3XT aims to provide instant, programmable U.S. dollar payments for institutional clients, leveraging smart contracts for automated transactions.
Key Takeaways
- Former Signature Bank executives, including CEO Jeffrey Wallis and founder Scott Shay, are behind the new venture.
- N3XT operates as a "narrow bank," meaning deposits are fully backed by cash or short-term U.S. Treasuries.
- The bank utilizes a private blockchain for instant payment settlements and smart contracts for transaction automation.
- The launch is backed by prominent venture capital firms such as Paradigm and Winklevoss Capital, having raised $72 million.
The Genesis of N3XT
N3XT emerges from the ashes of Signature Bank, which was shuttered by state regulators in March 2023 due to concerns over uninsured deposits and risk controls. Signature's popular Signet platform, a real-time payment system favored by crypto businesses, is what N3XT aims to emulate and enhance.
A New Era of Banking
Led by CEO Jeffrey Wallis, formerly Signature Bank's Director of Digital Asset Strategy, and founder Scott Shay, who co-founded Signature and created Signet, N3XT is designed to offer a similar, yet more advanced, service. The bank's architecture is built for programmability and compliance, enabling businesses to automate financial operations like supplier payments and collateral adjustments, operating outside traditional banking hours.
"We're applying crypto innovations to banking to deliver instant, programmable payments for institutional clients," stated Jeffrey Wallis. "Our platform gives businesses the control and reliability they need in a 24/7 global economy."
Strong Backing and Early Traction
The venture has secured significant backing from notable venture capital firms, including Paradigm, HACK VC, and Winklevoss Capital, the investment firm of Gemini founders Tyler and Cameron Winklevoss. To date, N3XT has raised $72 million across three funding rounds, with the most recent occurring in October.
The bank has already attracted clients from diverse sectors such as cryptocurrency, shipping, logistics, and foreign exchange, reporting a "robust pipeline" of prospective customers eager for its innovative payment solutions.
Sources
- Ex-Signature Bank Execs Launch Blockchain-Powered N3XT Bank Backed by Paradigm, Winklevoss, CoinDesk.
Related Articles
- Trend Research's $800M ETH Liquidation — A 3AC Déjà Vu? How 411K ETH Dump Shook the Altcoin Market
- Stablecoin Transfer Volume Hits \.8T Record — Doubles Visa and PayPal Combined as Fear Grips Crypto
- Fear & Greed Index Hits 12: Extreme Fear Grips Crypto as Every Funding Rate Turns Negative
- NEAR Protocol Surges 41% While Fear & Greed Hits 12 — AI Catalysts Power a Counter-Trend Rally
- 38% of Altcoins Near All-Time Lows — This Drawdown Is Worse Than the FTX Collapse
