Former Signature Bank Execs Launch N3XT, Blockchain-Based Neobank

A group of career banking and payments experts has joined together to create N3XT, a blockchain-based payments neobank. The team includes three former executives of Signature Bank, a now-shuttered depository institution that was responsible for the third-largest banking failure in U.S. history.

What's the Scoop?

• Built for Payments: N3XT is built around a private, permissioned blockchain that can settle transactions immediately between parties without relying on outside financial institutions to clear payments.
• Smart Contract Functionality: As a blockchain, N3XT will come equipped with smart contracts. Clients can take advantage of this functionality to execute transactions once specific conditions are met.
• Wyoming Registered: N3XT is a full-reserve, "narrow" bank that is licensed to operate globally under a Wyoming Special Purpose Depository Institution charter. It cannot lend funds, will publish daily reserve holdings, and must back every dollar of deposits by cash or short-term treasuries.
• Big Backers: The firm has raised three rounds of financing from leading investors including Paradigm, HACK VC, and Winklevoss Capital. It is launching with inaugural clients from the crypto, shipping/logistics, and foreign exchange industries.