The platform, aptly named Signet, will be beginning its services from the 1stof January, 2019. Signet will allow bank account holders to conduct transactions on the decentralized ledger in a secure, peer to peer manner around the clock.
CEO Joseph DePaolo thanked the NYDFS and said,
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. 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.
Signet will be built by Signature Bank with the help from trueDigital Holdings LLC. trueDigital is a settlement technology developer that leverages the power and efficiency of blockchain for financial institutions.
Banks & Blockchain
As more and more institutes warm up to blockchain technology, banks are realizing that though cryptocurrency may not be in their best interest, the technology certainly is. The higher speed of transactions, extremely low cost and increased security makes blockchain a perfect tool for banks.
As the technology matures, penetrates financial markets and gains acceptance, banks all around the world are turning towards the decentralized ledgers. Sberbank, Russia’s largest bank has used the decentralized technology to execute a foreign exchange repurchase agreementusing smart contracts less than a week ago.
A nine member Japanese banking consortium is also working closelywith the IT mega corporation Fujitsu for a payment and settlement blockchain system.