Ex-Signature Bank Executives Launch Blockchain-Powered Narrow Bank Backed by Paradigm and Winklevoss Capital
N3XT Bank has been launched by former executives of Signature Bank as a blockchain-powered full-reserve bank operating under a Wyoming SPDI charter. Each dollar deposited is backed 1:1 by cash or short-term U.S. Treasuries, with deposits neither lent out nor subjected to risk, and reserves disclosed daily.
The bank is led by CEO Jeffrey Wallis, previously head of digital assets at Signature Bank, and co-founded by Scott Shay, a Signature Bank co-founder. It is backed by investors including Paradigm, HACK VC, and Winklevoss Capital, having raised approximately $72 million across three funding rounds, the latest occurring in October.
N3XT Bank integrates instant settlement via a private blockchain, providing programmable U.S. dollar payments and smart contracts that enable automated functions such as supplier payments and collateral adjustments. The institution aims to offer 24/7 global payments and emulate Signet-like real-time payment services tailored for institutional clients.
This development follows the closure of Signature Bank in March 2023 after the collapse of Silicon Valley Bank, when the FDIC cited concerns over Signature's overreliance on uninsured deposits and weak risk controls.
