Ex-Signature Bank execs Launch Blockchain-Powered Bank N3XT

A group of former executives from the collapsed crypto-friendly Signature Bank has launched a new blockchain-based, state-chartered bank called N3XT, aiming to provide instant 24-hour payments using a private blockchain. The company’s CEO and President, Jeffrey Wallis, has stated that crypto innovations are at the heart of the new venture, with the goal of delivering instant, programmable payments for institutional clients.

What is N3XT and its Goals?

N3XT is a blockchain-powered bank that aims to settle payments instantly at any time using a private blockchain. The company offers programmable payments through smart contracts and has been designed for interoperability with stablecoins, utility tokens, and other digital assets. N3XT will operate under a Wyoming Special Purpose Depository Institution (SPDI) charter and will not offer lending services.

Key Features of N3XT

Private Blockchain: N3XT utilizes a private blockchain to enable instant and secure transactions.
Interoperability: The company’s systems have been designed for interoperability with stablecoins, utility tokens, and other digital assets.
Smart Contracts: N3XT offers programmable payments through smart contracts, allowing for customized and automated transaction processing.
Reserve Backing: The bank claims its reserves are backed one-to-one by cash or short-term US Treasurys, with promises to share reserve holdings daily.

Background and Context

Signature Bank was one of three crypto-friendly banks that collapsed in the 2023 US banking crisis due to a bank run and ties to the then-rapidly falling crypto market. The Federal Deposit Insurance Corporation took control of Signature Bank in March 2023, citing an overreliance on uninsured deposits, weak risk controls, and a worsening run on deposits.

Crypto Venture Capital Firms Back N3XT

N3XT has raised three rounds of financing from a range of investors, including Winklevoss Capital, Paradigm, and HACK VC. The bank’s client base at launch includes unnamed businesses across crypto, foreign exchange, shipping and logistics, and a variety of other sectors.

Expert Insights

Jeffrey Wallis, Signature Bank’s former director of digital asset and Web3 strategy, is now N3XT’s CEO and President. Wallis stated, “Money should move as seamlessly as information. We’re applying crypto innovations to banking to deliver instant, programmable payments for institutional clients.”

Alexander Pack, co-founder of HACK, expressed his support for N3XT and its founders, saying, “N3XT’s founders, Scott and Jeff, are forces of nature. They previously built Signature Bank, the biggest and best bank to support the US crypto industry in a regulated way, before the last administration forced them to shut down.”

Conclusion

N3XT’s launch marks an exciting development in the world of blockchain-powered banking. With its focus on instant and secure transactions, interoperability with digital assets, and reserve backing, the bank is poised to revolutionize the way businesses and institutions handle payments. As the crypto and banking industries continue to evolve, it will be interesting to see how N3XT navigates the regulatory landscape and meets the needs of its clients.

FAQ

What is N3XT and what does it do?: N3XT is a blockchain-powered bank that provides instant and secure transactions using a private blockchain.
What is the goal of N3XT?: N3XT aims to deliver instant, programmable payments for institutional clients.
Will N3XT offer lending services?: No, N3XT will not offer lending services.
What is the backing of N3XT’s reserves?: N3XT’s reserves are backed one-to-one by cash or short-term US Treasurys.
Who is backing N3XT?: N3XT has raised financing from Winklevoss Capital, Paradigm, and HACK VC.
What is the launch date of N3XT?: N3XT launched on an unspecified date.
What is the regulatory status of N3XT?: N3XT operates under a Wyoming Special Purpose Depository Institution (SPDI) charter.