N3XT: New Blockchain-Based Payments Bank from Former Signature Bank Executives

Former Signature Bank Executives Launch N3XT, a Blockchain-Based 24/7 Payments Bank

Summary: Former executives from the now-defunct Signature Bank are launching N3XT, a state-chartered blockchain bank aimed at providing 24/7 payment services. N3XT will focus on institutional clients, utilize a private blockchain for instant transactions, and secure backing from prominent crypto investors. The initiative comes in response to the challenges faced by crypto-linked banks during the 2023 banking crisis.

Key Takeaways:

N3XT is a blockchain bank based in Wyoming, fully reserved and tailored for institutional clients.
The bank operates on a private blockchain, allowing programmable smart-contract payments and does not engage in lending.
N3XT has received financial support from major investors, including Winklevoss Capital, Paradigm, and HACK VC.

Introduction to N3XT: A 24/7 Payments Solution

Former leaders of the now-closed Signature Bank are back with a new venture focused on constant financial transactions. Named N3XT, this blockchain-based bank is designed to facilitate instantaneous payments, available at any time.

N3XT: Operating with a Private Blockchain

N3XT, announced recently, will leverage a private blockchain that enables transaction settlements 24/7. This innovative platform will allow for programmable payments utilizing smart contracts while working in harmony with stablecoins, utility tokens, and a variety of digital assets.

The bank will function under Wyoming's Special Purpose Depository Institution framework, permitting it to operate as a fully reserved, non-lending financial institution focused on safeguarding digital assets.

Led by Scott Shay, the founder of Signature Bank, N3XT aims to improve the banking landscape following the collapse of three major crypto-friendly banks in the 2023 financial crisis, including Signature, which fell due to rapid deposit outflows and plummeting market confidence.

In March 2023, the Federal Deposit Insurance Corporation took control of Signature Bank, highlighting issues like liquidity problems and risk concentrations.

N3XT's team also includes Jeffrey Wallis, a former director of digital assets and Web3 strategy at Signature, who will serve as CEO and president. Wallis expressed the bank's commitment to making financial transfers as seamless as digital communications.

“We’re applying crypto innovations to banking to deliver instant, programmable payments for institutional clients,” Wallis stated.

Avoiding Previous Pitfalls: A Safe Structure

To mitigate risks that led to Signature Bank's failure, N3XT will not offer loans. Instead, it guarantees that all deposits are backed one-to-one by cash or short-term U.S. Treasuries, with daily transparency regarding reserves.

This framework mirrors the practices of stablecoin issuers while ensuring compliance with banking regulations. Currently, N3XT is onboarding clients from various sectors, such as cryptocurrency, foreign exchange, shipping, and logistics, which require continuous transaction settlements.

N3XT has garnered substantial attention from venture capitalists, completing three funding rounds with contributions from notable funds such as Winklevoss Capital, Paradigm, and HACK VC.

Alexander Pack, co-founder of HACK VC, expressed his support on X, commending the founders for re-entering the crypto sector after the closure of Signature Bank.

European Banking Consortium to Launch Euro Stablecoin

In related news, ten of Europe’s largest banks have formed a consortium to create a euro-backed stablecoin by mid-2026, representing the region's most robust strategy to challenge the U.S. dollar's dominance in digital finance.

The consortium includes prominent banks like BNP Paribas, ING, UniCredit, and CaixaBank. They have established a company named Qivalis, based in Amsterdam, to develop a digital payment instrument that complies with the MiCA regulatory framework.

Currently, euro-denominated stablecoins are scarce, with only $649 million in circulation, compared to a market largely dominated by dollar-pegged tokens.

Qivalis has assembled a strong leadership team as they navigate the regulatory approval process. Jan-Oliver Sell, a former Coinbase Germany chief, will take on the role of CEO, and Floris Lugt, an experienced ING banker, will serve as CFO.

The consortium has already applied for an electronic money institution license with the Dutch Central Bank, and additional European banks may join this initiative in the future.