Former Signature Bank executives Scott Shay and Jeffrey Wallis are launching N3XT, a blockchain-based bank focusing on digital-asset payments under a Wyoming SPDI charter.
N3XT promises enhanced transparency and security by functioning as a narrow bank, addressing previous gaps left by Signature and Silvergate in crypto fiat access.
Former Signature Executives Unveil Blockchain Bank N3XT
Former Signature Bank executives are launching N3XT, a new blockchain-based bank. It is structured as a full-reserve bank, focusing on 24/7 dollar payments for digital-asset clients.
Scott Shay and Jeffrey Wallis are key figures behind N3XT, introducing a new banking model with no lending. “N3XT is designed as a full-reserve bank that does not make loans; instead, every dollar of customer deposits is to be backed entirely by cash and short-term U.S. Treasury securities…” Source. This model uses a Wyoming SPDI charter for regulatory compliance.
N3XT Targets Always-On Dollar Payments for Digital Firms
N3XT’s entrance targets digital-asset firms needing always-on U.S.-dollar rails. It emphasizes transparency with daily reserve reporting to differentiate from traditional banks.
The use of a full-reserve model addresses prior risks associated with fractional-reserve lending. Industry observers suggest it could alter liquidity dynamics in the digital-asset sector.
Linking N3XT’s Vision to Prior Crypto Bank Challenges
N3XT’s approach follows Signature Bank and Silvergate’s previous roles in providing 24/7 settlements. These banks faced challenges that N3XT aims to overcome.
Experts indicate that N3XT’s focus on transparency could decrease depositor risk, though profitability may be lower. This model aligns with the stringent regulatory climate for crypto banking.
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