Signature Bank To Offer Blockchain Payments System
December 5, 2018 3:10 pm
The recent reports say that the Department of Financial Services of New York (NYDFS) announced that it has authorized a blockchain-based digital platform provided by NYC based Signature Bank.
Maria T. Vullo, the Superintendent, NYDFS said that the department has authorized New-York based Signature Bank to provide digital payment platform in the state. The system uses blockchain technology to allow its users to transfer ‘Signets’ to make payments without any transaction fees, at any time of the day, year-round.
The new system will allow its users to transfer funds in real-time between two commercial clients of Signature Bank. The process does not require any third party. The announcement also added that Signet has been subject to a complete review that also needs to comply with the appropriate regulatory conditions.
Signet balances are permitted for coverage by the Federal Deposit Insurance Corporation (FDIC), of which Signature Bank is a member. The partnership supports most private U.S. bank deposits until the legal insurable amounts determined.
“We are pleased to strengthen and foster regulated innovation […] 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.”
The announcement also states that Signature Bank is a full-service commercial bank with 30 private client offices across the New York metropolitan area. According to the sources, the current asset of the bank is $45.87 billion.
According to the recent reports, the Bank of America (BOA) holds more than Blockchain patents. On March 2014, BoA filed its first patent related to the blockchain.