Ex-Signature Bank Team Launches N3XT — Wyoming Full-Reserve Bank for Programmable USD
Former Signature Bank executives have launched N3XT, a blockchain-powered narrow (full-reserve) bank operating under a Wyoming SPDI charter. N3XT settles payments instantly on a private blockchain and supports programmable U.S. dollar payments via smart contracts, targeting institutional clients across crypto, shipping, logistics and FX. The bank does not lend deposits; each dollar is backed 1:1 by cash or short-term U.S. Treasuries and holdings are disclosed daily. CEO Jeffrey Wallis (ex-Director of Digital Asset Strategy at Signature) leads the firm; Scott Shay (Signature co-founder and Signet creator) is a founder. N3XT has raised about $72 million from investors including Paradigm, Winklevoss Capital and HACK VC. The product aims to revive Signature’s Signet-style real-time, 24/7 payments model but with narrow-bank risk profile and full-reserve transparency, catering to businesses that need automated, compliant, instant dollar rails.
Bullish
This news is bullish for crypto markets, especially for stablecoins, payment rails and institutional crypto services. A Wyoming-chartered, full-reserve bank that offers 24/7 programmable USD rails reduces custody and settlement friction for crypto firms and institutional counterparties — improving on- and off-ramp reliability. Backing by prominent VCs (Paradigm, Winklevoss) and the presence of ex-Signature Signet architects lend credibility and increase the likelihood of adoption. In the short term, traders may see modest positive flows into stablecoins and exchange/DeFi tokens tied to payments infrastructure as market participants price improved USD rails. In the medium to long term, reliable narrow-bank rails could increase institutional participation, reduce counterparty settlement risk, and support higher on-chain USD liquidity — a structural positive for crypto market depth and risk appetite. Caveats: impact is muted relative to macro events; narrow-bank model reduces bank-run risk but regulatory scrutiny or execution failures could temper benefits. Historical parallel: Signature Bank’s Signet supported crypto flows while operational; its shutdown in 2023 tightened USD rails and hurt liquidity. N3XT aims to restore similar functionality with lower risk, which traders typically view as supportive for market stability and growth.