New York-based Signature Bank is launching a digital payments platform built on a blockchain architecture to streamline real-time payments.
Announced Tuesday, the Signet platform will allow the bank's customers to conduct payments at any time of the day, beginning Jan. 1, 2019. Signature Bank claims that all transactions made will be secure, require no transaction fees and avoid third-parties, meaning funds will be sent directly from one client to another.
There will, however, be a minimum account balance requirement of $250,000 for clients.
The platform is being built in conjunction with trueDigital Holdings LLC, another New York-based firm focused on building exchange and settlement technology using a blockchain infrastructure. The company primarily provides services to financial markets.
Signature has just received approval from the New York State Department of Financial Services (NYDFS) to offer services within the state. Further, the Federal Deposit Insurance Corporation (FDIC) has approved Signet deposits to receive insurance, “up to the legal insurable amounts.”
In a statement, Signature president and CEO Joseph DePaolo said it was "gratifying" to receive approval from NYDFS, saying that regulated innovation helped the bank build up its platform.
Scott Shay, chairman of Signature Bank's board, explained that a number of industries benefit from real-time transactions, including energy distribution and over-the-counter trading desks.
"Signet puts Signature Bank on the cutting edge of commercial digital payments," he added.
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