The Department of Financial Services of New York (NYDFS) has authorized a Signature Bank’s real-time blockchain-based payment platform, called Signet.
NYDFS superintendent Maria T. Vullo said:
“New York continues to support and help advance innovation through sound state regulation and with products such as Signet.”
Signet platform allows the bank clients to “transfer ‘Signets’ to make payments with no transaction fees, at any time of the day, year-round.”
Funds are “transferred in real-time between two commercial clients of Signature Bank, eliminating any dependence on a third party.” Signet has been subject to a “comprehensive and rigorous review” and needs to comply with “significant regulatory conditions.”
All Signet funds are covered by the Federal Deposit Insurance Corporation (FDIC), of which Signature Bank is a member. This corporation underwrites most private U.S. bank deposits “up to the legal insurable amounts defined.”
As a reminder, in November, crypto hardware wallet Ledger opened a New York office to develop its institutional custody offering Ledger Vault.