Former Signature Bank Executives Launch N3XT, a Blockchain-Based 24/7 Payments Bank

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smart-contract payments and will not offer lending.N3XT has secured backing from major crypto investors including Winklevoss Capital, Paradigm and HACK VC.Their new institution, N3XT, is a state-chartered, blockchain-based bank designed to move money at any hour, with near-instant finality.Announced on Thursday, N3XT says it will operate on a private blockchain that allows transactions to clear around the clock.The platform supports programmable payments through smart contracts and is built to work alongside stablecoins, utility tokens and other digital assets.The institution will run under Wyoming’s Special Purpose Depository Institution framework, a charter that allows fully reserved, non-lending banks designed to custody digital assets.The effort is led by Signature Bank founder Scott Shay, whose former institution was one of three crypto-linked banks that collapsed during the 2023 banking turmoil.Signature, alongside Silicon Valley Bank and Silvergate, fell after deposit outflows accelerated and market confidence evaporated.The Federal Deposit Insurance Corporation seized Signature in March 2023, citing liquidity pressure, concentration risks and a rapid run by large uninsured depositors.N3XT’s leadership includes another Signature veteran, Jeffrey Wallis, previously the bank’s director of digital asset and Web3 strategy. Wallis will serve as CEO and president. He said the new institution is built around the idea that financial transfers should be as frictionless as sending digital information.“We’re applying crypto innovations to banking to deliver instant, programmable payments for institutional clients,” Wallis said.To avoid the vulnerabilities that contributed to Signature’s downfall, N3XT will not offer lending. The bank says all deposits will be backed one-to-one by cash or short-term U.S. Treasurys, with daily disclosures of reserve holdings.That structure mirrors elements of stablecoin issuers, while keeping the institution within the contours of a regulated bank charter.The firm is currently onboarding businesses from several industries, including crypto, foreign exchange, shipping, logistics and other sectors that depend on continuous settlement.N3XT has drawn notable support from the venture community. 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