Former executives of Signature Bank are launching a blockchain-based bank called N3XT

According to Reuters, former executives of Signature Bank are launching a new blockchain-based bank called N3XT, focused on facilitating instant, around-the-clock dollar payments.

The bank was founded by Scott Shay, the founder and former chairman of Signature Bank, with Jeffrey Wallis, former director of digital assets and Web3 strategy, serving as CEO. N3XT will operate globally under a special purpose bank license in Wyoming and will not engage in any lending activities. Every dollar deposited at the bank will be backed by cash or short-term U.S. Treasury securities, and it will publish its reserve holdings daily. Unlike Signature Bank, N3XT will not receive Federal Deposit Insurance Corporation (FDIC) insurance. Wallis stated that N3XT plans to initially focus on digital asset clients, many of whom have already begun the onboarding process. Signature Bank previously collapsed in March 2023.