N3XT: Signature Bank Vets Launch New Blockchain-Based Bank

Nearly three years after Signature Bank's collapse, former executives are back with N3XT, a new blockchain-based bank designed for instant, around-the-clock U.S. dollar payments. Founded by Scott Shay, former chairman of Signature Bank, and led by CEO Jeffrey Wallis, previously Signature's director of digital asset and Web3 strategy, N3XT seeks to fill a gap in the market, especially for digital asset clients.

Key Features of N3XT:

• Blockchain-Based: Leveraging blockchain technology for faster and more efficient payment processing.
• 24/7 Payments: Designed for round-the-clock U.S. dollar transactions.
• Wyoming Charter: Operating globally under a Wyoming special-purpose bank charter.
• No Lending: N3XT will not engage in lending activities.
• Full Reserves: Every dollar of deposits will be backed by cash or short-term U.S. Treasuries, with daily publication of reserve holdings.
• Custodial Partners: Reserves held at undisclosed custodial partners.
• No FDIC Insurance: As a Wyoming special-purpose bank, N3XT isn't required to obtain FDIC insurance.

N3XT Aims to Address Past Concerns

Jeffrey Wallis emphasized that N3XT's risk management differs significantly from Signature Bank's. N3XT focuses solely on maintaining liquidity and ensuring clients' capital is always available, avoiding any lending activities. This approach directly addresses criticisms of Signature's "poor management" and "rapid, unrestrained growth" that contributed to its failure.

N3XT plans to initially target digital asset clients, many of whom are already in the onboarding process.

Key Takeaways:

• N3XT is a new blockchain-based bank founded by former Signature Bank executives.
• It aims to provide 24/7 U.S. dollar payment capabilities.
• N3XT will operate under a Wyoming special-purpose bank charter and will not engage in lending.
• The bank emphasizes full reserves and transparency to address past risk management concerns.