Commercial lender Signature Bank has secured the go-ahead from the New York State Department of Financial Services (DFS) to launch a digital payments platform powered by blockchain technology.
Dubbed Signet, the new platform has been developed in collaboration with technology firm trueDigital.
From 1 January 2019, the platform will facilitate real-time fund transfers round-the-clock between the bank’s commercial clients. The aim is to avoid reliance on third-parties.
Users will not be charged transaction fees but will require a minimum account balance of $250,000 to make payments.
Signature Bank president and CEO Joseph DePaolo said: “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.
“We believe our new Signet programme will further differentiate Signature Bank and arm our commercial clients with more of the types of tools and capabilities they need to successfully operate their businesses in our fast-changing, technology-based economy.”
Signet deposits are eligible for coverage by the Federal Deposit Insurance Corporation.
DFS superintendent Maria Vullo said: “DFS is pleased to strengthen and foster regulated innovation in New York’s burgeoning financial technology sector, specifically within our state-chartered banking system.
“New York continues to support and help advance innovation through sound state regulation and with products such as Signet, which provide lower-cost ways for businesses to efficiently make payments.”