Signature Bank has unveiled a new digital payments platform designed to enable real-time payments for its commercial clients.
The bank partnered with trueDigital Holdings, a New York-based blockchain-based infrastructure, exchange and settlement technology company, to create it Signet Platform.
It will use blockchain technology in its architecture, allowing Signature Bank’s commercial clients to make payments in U.S. dollars 24 hours a day, seven days a week, 365 days a year.
“The ability to transmit funds between approved, fully vetted commercial clients of the Bank at all times is very valuable, especially in light of the increasing speed and frequency at which they conduct their business,” said Joseph J. DePaolo, president and CEO at Signature Bank.
The Signet Platform will be open to all commercial clients effective January 1, 2019 at 12:01 a.m.. Eastern Time, Transactions made on the platform settle in real time, are safe and secure, incur no transaction fees, and require a minimum account balance of $250,000.
Typically, in the case of real-time payments, funds are transferred between two different institutions. With Signet, funds are transferred in real-time between commercial clients of Signature Bank, eliminating any dependence on a third party.
The Signet Platform has been approved for use by the New York State Department of Financial Services. Deposits held within the Signet Platform are eligible for FDIC insurance, up to the legal insurable amounts defined by the FDIC.
“It is gratifying to have the support of Superintendent Vullo and the Department of Financial Services,” DePaolo said.
“Through regulated innovation, we were able to turn our vision into a reality. It is clear the Superintendent and Department of Financial Services have thoroughly researched the financial technology arena and understand how it impacts the future of financial services.”
