New York-based commercial bank Signature Bank (SBNY) recently launched a real-time, secure digital payment platform called “Signet“, approved by the New York State Department of financial services. The Signature bank is partnering with a New York-based blockchain based infrastructure, exchange and settlement technology company called “trueDigital Holdings LLC” which provides solutions for traditional and emerging financial markets.
Signature Bank Overview
Listed on NASDAQ with the ticker “SBNY“, Signature Bank is a full-service commercial bank with offices in the 5 boroughs of New York City, as well as Nassau, Suffolk, and Westchester counties in New York and Fairfield Country in Connecticut. The main focus of the bank is to provide service by fulfilling the financial needs of privately owned businesses, their owners and senior managers. Clients have a direct single point interaction with the Bank through their Private Client Group which contains people recruited from major New York banks and brokerages.
trueDigital Holdings LLC
A New York-based global financial technology company, trueDigital Holdings, LLC, offers Creative Solutions to financial markets utilizing blockchain based Technology to enable smooth asset transfer and settlement. The Company deploys a private blockchain and smart contracts to run the token business properly yielding results. trueDigital has been the earliest to create the first-of-its-kind margined deliverable swap contracts on Bitcoin and also is the first institutional OTC-based digital asset reference rates.
What is the Signet Platform?
The Signet platform would be built on blockchain technology. This has been particularly designed to comfort real-payments for Signature’s commercial and asset management clients. The platform would be able to make payments 24 hours a day, 7 days a week, 365 days a year by converting the US dollars into tokens compliant with ethereum’s ERC-20 standard. Such a transaction would be settled in the real-time itself which are more safe and secure with no transaction fees incurred. This digital payments platform would come in handy for 2 commercial clients of the Bank to transfer funds in the real-time without being reliant or involving any third party. The Signet platform will allow payments to be made on a variety of industries such as Power, Shipping, Real Estate, Auto and Digital Assets. There is one common thing about the mentioned industries altogether, Costs, Delays, Operational risks, and counter-party risks are significantly at a higher level until now.
Sunil Hirani, Founder of trueDigital, noted: “We are pleased to partner with Signature Bank. 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.”
Just the beginning…
Usually, the Swift Interbank platform or the Automated Clearing House (ACH) which are Traditional Corporate Payments, take around as long as 3 days and generally disabled during the weekends. This can drastically impact one’s business when some situations require instant actions to be performed. With this early implementation of blockchain technology in Signature bank, its CEO feels to be safer as he believes that banks won’t remain anymore, blockchain may override things. Signature’s Signet facility is currently available only to Signature Customers but sooner other banks may start joining a similar note, completely eliminating the need for the involvement of a third party.
However, Signature Bank has been in privilege to be the first bank to receive a regulatory permission to use blockchain in this capacity by the approval for Signet platform by the New York State Department of Financial Services.
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