Former Signature Bank Exec Launches Blockchain-Based Bank N3XT

On December 4th, Reuters reported that nearly three years after the collapse of Signature Bank, which was known for serving cryptocurrency customers, its former executives are setting out to launch a new bank based on blockchain technology called N3XT, which focuses on enabling instant, round-the-clock dollar payments. N3XT was founded by Scott Shay, founder and former chairperson of Signature Bank. Jeffrey Wallis, who previously served as director of digital assets and Web3 strategy at Signature Bank, will serve as CEO of N3XT.
Mr. Wallis said every dollar of N3XT's deposits would be backed by cash or short-term Treasuries, and that the bank would publish its reserve holdings on a daily basis, distinguishing it from Signature Bank. Its reserves would be held with an escrow partner, which he declined to name. N3XT will not be insured by the Federal Deposit Insurance Corporation (FDIC), and special purpose banks in Wyoming do not need FDIC insurance.