A group of former executives from Signature Bank launched a new blockchain-based bank called N3XT with the goal of enabling instant 24-hour payments. N3XT aims to settle payments instantly using a private blockchain and offers programmable payments through smart contracts, designed for interoperability with stablecoins and digital assets.

Signature Bank founder Scott Shay founded N3XT, which operates under a Wyoming SPDI charter and does not offer lending services. Signature Bank, along with Silicon Valley Bank and Silvergate Bank, collapsed in the 2023 US banking crisis due to a bank run and ties to the falling crypto market.

Jeffrey Wallis, former director of digital asset and Web3 strategy at Signature Bank, will be N3XT’s CEO and president. The bank avoids lending services and claims its reserves are backed one-to-one by cash or short-term US Treasurys, with daily sharing of reserve holdings.

N3XT lists its client base as businesses across crypto, foreign exchange, shipping, logistics, and other sectors. The bank raised financing rounds from investors including Winklevoss Capital, Paradigm, and HACK VC. Hack co-founder Alexander Pack expressed support for N3XT and its founders, highlighting their resilience in building the new venture after the closure of Signature Bank.

Read more at CoinTelegraph: Ex-Signature Bank Executives Launch Blockchain Bank N3XT