Signature Bank executives launch full-reserve bank N3XT…Wyoming SPDI approval

JH Kim

Summary

Executives from Signature Bank launched the blockchain-based full-reserve bank N3XT Bank.
N3XT Bank said it obtained Wyoming SPDI approval, holds deposits 1:1 in cash and short-term U.S. Treasury securities and discloses this daily, and has adopted the narrow bank model.
Paradigm and the Winklevoss twins were mentioned as investors, and it said the bank presents a new banking model with features that automate payments and settlements 24 hours a day.

Executives from Signature Bank have launched the blockchain-based full-reserve bank N3XT Bank.

On the 4th (local time), according to crypto-focused media CoinDesk, N3XT Bank will operate under a Wyoming SPDI (Special Purpose Depository Institution) charter and has adopted a narrow bank model that does not use deposits for lending.

N3XT Bank plans to hold customer deposits 1:1 in cash and short-term U.S. Treasury securities and to disclose this daily. Instead of generating revenue through lending, it emphasizes a reserve-centric operating structure and transparent disclosures.

In terms of services, it said it will offer 24-hour programmable dollar payments and smart contract-based automatic remittance functions. Through this, it plans to support institutional and corporate clients in handling payments, settlements, and fund movements at all times.

Investors mentioned include Paradigm and the Winklevoss twins, founders of the crypto exchange Gemini. CoinDesk said the launch is an example of a new banking model in which traditional banking executives and crypto industry capital combine to 'hold deposits as safe assets and automate payments with software.'