Key Highlights
- Former Signature Bank executives launch N3XT, a blockchain-powered, 24/7 payment bank.
- N3XT follows a full-reserve model, avoids lending, and uses smart contracts for instant payments.
- Backed by Winklevoss Capital, Paradigm, and HACK VC, targeting crypto, FX, and logistics clients.
A group of former executives from Signature Bank, the crypto-friendly bank that collapsed in March 2023, has launched a new blockchain-based bank called N3XT.
The venture aims to offer instant, programmable U.S. dollar payments to business clients using a full-reserve banking model that does not involve lending.
What is N3XT and who is behind it
N3XT is co-founded by Signature’s Founder Scott Shay, and will be led by Jeffrey Wallis, who previously directed digital‑asset and Web3 strategy at Signature.
N3XT obtains a Wyoming Special‑Purpose Depository Institution (SPDI) charter, a regulatory structure that allows it to operate globally without engaging in traditional bank lending.
Why N3XT matters and how it works
N3XT aims to revive some of the strengths Signature once offered, but with a different risk model. The new bank uses a private, permissioned blockchain to settle transactions instantly, 24 hours a day, seven days a week, enabling businesses to make programmable payments through smart contracts.
Jeffrey Wallis, CEO & President of N3XT, said, “We’re applying crypto innovations to banking to deliver instant, programmable payments for institutional clients. Our platform gives businesses the control and reliability they need in a 24/7 global economy.”
This could be a major upgrade over traditional banking systems, which often require days for business‑to‑business transfers. Most importantly, N3XT follows a full‑reserve or narrow bank model, every deposit is backed one-to-one by cash or short‑term U.S. Treasuries, and the bank says it will publish reserve holdings daily.
N3XT will not lend deposits out, a sharp contrast to many traditional banks, eliminating credit‑risk but also meaning it won’t offer traditional banking services.
Signature Bank collapse to N3XT launch
Signature Bank was shut down by regulators in March 2023, making it one of the largest banking failures in U.S. history. Its collapse followed a wave of rapid deposit withdrawals triggered by wider concerns over banking stability and exposure to the crypto industry.
Hack Co-Founder Alexander Pack said in an X post that the founders of Signature Bank had previously built “the biggest and best bank to support the US crypto industry in a regulated way,” before the last administration forced them to shut down. Most founders would quit after something like that, but instead they immediately went back to work building N3XT.
At Signature, the bank had offered a crypto‑friendly payment network called Signet, which allowed crypto firms to move money 24/7.
N3XT appears to draw on the Signet experience, but replaces Signature’s broad commercial banking model with a lean, blockchain‑native payments infrastructure and a strictly full‑reserve structure.
N3XT target clients and future plans
At launch, N3XT says its primary clients will come from crypto, foreign exchange, shipping, logistics and other sectors that benefit from instant global payments.
The bank has already raised capital from prominent backers including Paradigm, Winklevoss Capital and HACK VC among others. By steering clear of lending and backing deposits fully with liquid assets, N3XT hopes to avoid the liquidity and risk failures that sank Signature.
Whether this model can gain trust and traction remains to be seen, but N3XT signals a renewed attempt to merge banking regulation with crypto‑era payment technology.
Also Read: IMF: Stablecoin Growth May Push Banks Toward Tokenization
