Signature Bank, a New York-based commercial bank is about to rolls out a new digital payment platform that will enable corporate customers to make real-time payments with the help of blockchain technology.
The new digital payment platform that will be named as ‘Signet’ platform will allow the customers of the banks to conduct payments during any time of the day from 1st Jan 2019, the financial institution announced on Tuesday. Signature Bank claimed through a statement that all the transactions made via digital platform will be secure, and it won’t require any transaction fees and third party involvement.
The institution also updated that all the funds will be sent directly from one client to another client. However, before making any transaction, the user will need to have a minimum account balance of $250,000.
The yet to be launched digital platform will be built in accordance with another New York-based firm naming trueDigital Holdings LLC. The cooperative firm is already believed to have experience and focus on building digital exchanges and settlement technology by making use of blockchain infrastructure.
The new digital payment platform from Signature Bank has also received an approval from the New York State Department of Financial Services (NYDFS) so as to offer digital payment services within the state. Besides that, Signet deposits to receive insurance have also been approved by the Federal Deposit Insurance Corporation (FDIC) “up to the legal insurable amounts.”
Joseph DePaolo, Signature president and CEO in a statement that it was “gratifying” to receive approval from NYDFS. Joseph further added that the current regulated innovation has helped their bank to build up its platform.
DePaolo in a statement mentioned “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. As we have been stating, Signature Bank has made a commitment to invest in its technology infrastructure, and the Signet Platform is indicative of this investment along with the implementation of new systems for loan operations, credit approvals and foreign exchange.”
Chairman of Signature Bank’s board, ‘Scott Shay’ also made an announcement and mentioned that from real-time transactions many of the industries are being benefited for example over-the-counter trading desks and the energy distribution industry etc. Shay further added that “Signet puts Signature Bank on the cutting edge of commercial digital payments.”
Sunil Hirani, the founder of trueDigital mentioned that “the launch of Signet will address an obvious need that diverse ecosystems have for exchanging funds repeatedly with the same counterparty.” He further added that all this will significantly minimize risk, reduce costs as well as settlement times.