Signature Bank, a New York-based commercial bank, announced the launch of a blockchain-based digital payments platform to enable real-time payments for its commercial clients.
The Signet payments platform received approval from the New York State Department of Financial Services or NYDFS. Further, deposits held within the Signet Platform are eligible for FDIC insurance, up to the legal insurable amounts defined by the FDIC.
In a statement, Signature Bank said it is partnering with trueDigital Holdings, LLC, a New York-based blockchain-based company, for the launch of the Platform, which will be open to all commercial clients effective January 1, 2019.
The Signet Platform is expected to leverage blockchain technology in its architecture, allowing the bank’s commercial clients to make payments in U.S. dollars in all time, every day, through out the year.
The bank said transactions made on the Signet Platform settle in real time, are safe and secure, incur no transaction fees, and require a minimum account balance of $250,000. With Signet, funds are transferred in real-time between commercial clients of Signature Bank, eliminating any dependence on a third party.
According to Sunil Hirani, Founder of trueDigital, the launch of Signet will address an obvious need that diverse ecosystems have for exchanging funds repeatedly with the same counterparty. This will significantly reduce costs, counterparty risk and settlement times.
Joseph DePaolo, President and Chief Executive Officer at Signature Bank, said, “The ability to transmit funds between approved, fully vetted commercial clients of the Bank at all times is very valuable, especially in light of the increasing speed and frequency at which they conduct their business.”
Signature Bank is regulated by both the FDIC and the NYDFS.
Source: Read Full Article