Ex-Signature Bank Executives Launch Blockchain-Powered Bank N3XT

A group of former executives from the collapsed crypto-friendly Signature Bank has launched N3XT, a new blockchain-based, state-chartered bank aimed at enabling instant, 24/7 payments through a private blockchain.

Founded by Signature Bank founder Scott Shay, N3XT announced Thursday that it intends to deliver real-time settlement at any hour, using private blockchain rails and programmable payments enabled through smart contracts. The bank also emphasized that its infrastructure is designed for interoperability with stablecoins, utility tokens, and other digital assets.

N3XT will operate under a Wyoming Special Purpose Depository Institution (SPDI) charter — similar to Kraken Bank — and will not offer lending services.

Background: Signature Bank Collapse

Signature Bank was one of three major crypto-friendly banks — alongside Silicon Valley Bank and Silvergate — that collapsed during the 2023 U.S. banking crisis, following bank runs accelerated by turmoil in the crypto markets.

The FDIC seized Signature Bank in March 2023, citing:

• Heavy reliance on uninsured deposits

• Weak risk controls

• A rapidly worsening run on deposits

N3XT Says No Lending, Full Reserves

Jeffrey Wallis, former Signature Bank director of digital assets and Web3 strategy, will serve as CEO and President of N3XT.

Wallis wrote on X that the new bank is applying crypto innovation to traditional finance:

https://x.com/jeffwallis/status/1996580486026506744

“Money should move as seamlessly as information. We’re applying crypto innovations to banking to deliver instant, programmable payments for institutional clients.”

Key operational principles announced by N3XT:

• No lending services

• 1:1 backing of customer funds with cash or short-term U.S. Treasurys

• Daily reserve disclosures

• Support for industries including crypto, FX, logistics, and shipping

Backed by Major Crypto VC Firms

N3XT has raised three funding rounds from prominent investors, including:

• Winklevoss Capital

• Paradigm

• HACK VC

HACK VC co-founder Alexander Pack posted support for the launch on X:

https://x.com/alpackaP/status/1996703095099658745

Pack praised the founders’ resilience and experience:

“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… Most founders would quit after something like that, but instead they immediately went back to work building N3XT.”

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