Many banks are adopting Blockchain technology in developing financial products that are unique, efficient, and likely to bring more profits for their going concern concerns. Although Blockchain technology and its Distributed Ledger Technology architecture are conceptualized on the premise of eliminating third parties like banks, structural changes and the versatility of DLT are prompting an increasing number of these institutions to adopt Blockchain technology in developing futuristic banking solutions that few managers can dare to sideline.
The latest entry to the growing Blockchain-friendly financial businesses is Signature Bank that is based in New York, USA. The award-winning bank has released verified information about the establishment of a Blockchain-based digital payments platform. The new solution is expected to serve retail and institutional clients in need of real-time payment services. It is dubbed as Signet Payment Platform and the bank is confident that it will be a game changer in the real-time transactions.
NYDFS or the New York State Department of Financial Services has approved the Signature Bank Blockchain platform which means that the financial product is legalized as a consumer-beneficial banking service. Additionally, deposits held in Signet are eligible for insurance under FDIC standards since it meets the minimum threshold requirements for insurance under the set policies.
Signature Bank Is Liaising With trueDigital Holdings, LLC In The Project
Developing Blockchain platforms requires expertise and multi-dimensional consultations. The importance of collaboration is to create a state-of-the-art network that serves the interests of not only the target users but the company as well within the precepts of the law.
In this case, Signature Bank is partnering with a New York-based Blockchain tech firm known as trueDigital Holdings, LLC. The cooperation that has been in effect for quite some time will culminate with the launch of the Signet Blockchain platform that is expected to be live effective from January 1st, 2019.
Signet Solution Will Offer Seamless Payment Services
The trueDigital Holdings, LLC will enable Signature Bank to create and deploy the Signet platform that is leveraging on Distributed Ledger Technology architecture to support USD payments on a 24/7/365 basis.
The Bank and the consultants are assuring prospective users that the on-platform transactions will be authorized and verified on real-time in a secure and safe ecosystem. Further, there will be zero transaction fees as Signet is meant for Signature Bank’s account holders. However, users eligible for Signet will have to have an account balance of at least $250, 000.
Signet Platform Will facilitate Peer-to-Peer Intra-Bank Payment Solution
It is important to note that Signet will be facilitating peer-to-peer payment solutions that will be addressing the demand gap for versatile ecosystems of direct funds transfers. The founder of trueDigital Holdings, LLC, Sunil Hirani, is confident that Signet will enable Signature Bank to offer instant, low-risk, and cheap counterparty financial services.
The Chief Executive Officer and President of Signature Bank, Joseph DePaolo, said that Signet will be vital in the process of enabling approved and fully vetted customers to conduct business without inconveniences of structural setbacks.