Former Signature Bank leadership is moving forward with a new blockchain focused banking venture designed to provide continuous dollar payment capabilities without relying on traditional lending activities. The new institution, called N3XT, was founded by Scott Shay, previously the chairman of Signature, with Jeffrey Wallis serving as CEO. Wallis, who led digital asset and Web3 strategy at Signature, emphasized that the goal is to build a structure centered on instant payments, full reserve backing and liquidity availability at all times. Operating under a Wyoming special purpose bank charter, N3XT intends to function globally while avoiding the lending practices that contributed to vulnerabilities at several institutions during prior market disruptions. The bank will support only fully backed deposits held in cash or short term US Treasuries, with public daily reporting of reserve holdings to provide transparency for clients. The institution will not carry FDIC insurance, but Wyoming’s charter permits such a model provided deposits remain fully liquid. Early communication from the leadership highlights a focus on ensuring that customer capital remains constantly accessible and insulated from balance sheet risks, reflecting lessons learned from institutional failures that exposed weaknesses in growth intensive strategies and liquidity management.
N3XT’s design aims to create a modernized approach to institutional digital asset banking, building on the operational insights of the former Signet payment network that enabled round the clock USD movement for commercial clients. Wallis described that experience as influential in shaping the concept for N3XT, particularly in ensuring uninterrupted settlement capabilities across global markets. By operating without credit exposure, the bank intends to sidestep the pressures that contributed to rapid outflows during periods of market stress. Leadership has been clear that N3XT’s model differs substantially from Signature’s legacy risk posture, noting that retaining deposits in fully liquid assets eliminates dependencies on lending returns or credit assessment cycles. Early onboarding has reportedly begun with digital asset companies seeking payment and treasury solutions designed to complement blockchain based financial operations. The bank’s approach mirrors broader trends in the stablecoin and tokenized payments space where institutions aim to support immediate settlement, programmable money flows and improved transparency.
The renewed push into blockchain enabled financial services comes nearly three years after Signature’s collapse, which regulators attributed to poor management decisions and growth strategies that outpaced internal controls. N3XT positions itself as a response to those systemic concerns by offering a narrowly focused structure rooted in liquidity preservation and operational reliability. The timing aligns with increased institutional interest in real time digital dollar systems as firms look to reduce the need for prefunded accounts and eliminate delays associated with conventional banking hours. By using blockchain rails for settlement while maintaining traditional currency reserves, N3XT appears aimed at bridging institutional payment requirements with digital infrastructure without introducing balance sheet leverage risks. Its leadership is framing the bank as a new category of financial institution designed for continuous global operations, where client assets remain fully accessible and shielded from credit exposure. As digital asset markets expand and regulatory frameworks mature, N3XT’s model may become a reference point for institutions seeking payment centric banking structures that prioritize liquidity, transparency and operational certainty.
