Ex-Signature Bank Executives Launch Blockchain-Driven Bank N3XT

A group of former leaders from the now-defunct crypto-friendly Signature Bank has launched a new state-chartered bank called N3XT, which aims to facilitate instantaneous, 24-hour payments using blockchain technology.

Key Takeaways

N3XT is a newly launched blockchain-based bank by former Signature Bank executives.
The bank will enable instant, 24/7 payments using a private blockchain.
N3XT focuses on programmable payments through smart contracts and is interoperable with digital assets.
It operates under a Wyoming SPDI charter without offering lending services.
The bank has received backing from notable venture capital firms, highlighting investor confidence in the project.

N3XT seeks to provide seamless payment solutions by leveraging a private blockchain framework. The bank's distinctive features include programmable payment capabilities through smart contracts and compatibility with various digital assets like stablecoins and utility tokens. Established under a Wyoming Special Purpose Depository Institution (SPDI) charter, N3XT will not engage in lending activities. The initiative comes amid a backdrop of recent banking turmoil affecting crypto-friendly banks, as seen with the collapse of Signature Bank.

N3XT's Commitment to Instant Payments

On Thursday, N3XT announced its mission to facilitate instant payments at any time by utilizing private blockchain technology. The company emphasized its capability to provide programmable payments through sophisticated smart contracts. Furthermore, N3XT's infrastructure has been designed to ensure compatibility with various digital assets, including stablecoins and utility tokens.

Scott Shay, the founder of Signature Bank, is at the helm of N3XT, which operates under a special charter in Wyoming and will refrain from offering traditional lending services. This move responds to recent challenges faced by crypto-friendly banking institutions during the 2023 U.S. banking crisis.

Avoiding Lending Services

Jeffrey Wallis, who previously directed digital asset and Web3 strategy at Signature Bank, will lead N3XT as CEO and President. He emphasized that innovations in cryptocurrency are central to the bank's mission.

“Money should move as seamlessly as information,” Wallis stated. “We’re applying crypto innovations to banking to deliver instant, programmable payments for institutional clients.” N3XT will not engage in lending, and the bank assures that its reserves are fully backed by cash or short-term U.S. Treasuries, with daily updates on reserve holdings.

At its launch, N3XT will serve a diverse range of businesses across sectors including cryptocurrency, foreign exchange, shipping, and logistics.

Venture Capital Support for N3XT

N3XT successfully completed three rounds of financing, attracting investment from notable firms such as Winklevoss Capital, the venture capital company of Tyler and Cameron Winklevoss, Paradigm, and HACK VC.

Alexander Pack, co-founder of HACK VC, praised the determination of N3XT's founders in a social media post. "N3XT’s founders, Scott and Jeff, are forces of nature: they previously built Signature Bank, the biggest and best bank to support the U.S. crypto industry in a regulated way, before the last administration forced them to shut down," he commented.

"Most founders would quit after something like that, but instead, they immediately went back to work building N3XT," Pack added, underscoring the resilience and commitment of the team as they transition into this new banking venture.