Signature Bank incorporates blockchain to allow instant commercial client payments
A New York-based full-service commercial bank Signature bank has, in collaboration with a New York-based blockchain firm trueDigital Holdings, incorporated blockchain into their platform to let its commercial customers make instant U.S. dollar payments 24/7 among themselves.
The new solution is a platform called Signet Platform. and customers will start to use it on January 1 next year. It uses a permissioned or private blockchain. Initially, customers will do transactions free of charge but will require a minimum account balance of $250,000. Approved commercial clients of the bank will be able to transfer funds between themselves, thus eliminating dependence on a third party.
The new service will benefit a variety of customers and transactions including wholesale energy distribution market and over-the-counter institutional trade and settlement activities, shipping, real estate, auto and digital assets where costs, delays, operational risks, and counter-party risks are significant and have remained unaddressed until now.
Chairman of the Board Scott A. Shay said the platform will put the bank at the cutting edge of commercial digital payments at a time when on-demand payments are fast becoming the norm among not only consumers but also businesses. President and Chief Executive Officer at Signature Bank Joseph J. DePaolo said the platform will differentiate the bank and provide tools to their commercial clients to run their businesses in a fast-changing technology-based economy.
Chief Operating Officer of trueDigital Kevin Lupowitz said the platform will help clients to significantly reduce costs, operational and counterparty risks and settlement times.
It will also feature asset tokenization tools that could allow for asset selling on blockchain in fiat and cryptocurrency. The platform, which is regulated by both the Federal Insurance Deposit Corporation and the New York State Department of Financial Services, will also add additional currencies and paired transactions in currencies from the Americas, Europe and Asia.