According to a news report from Forbes, Signature Bank is launching a new payments platform -"Signet", for its institutional clients, based on the permissioned version of Ethereum blockchain.
The solution is developed in partnership with trueDigital Holdings. It will allow the Signature Bank clients to make money transactions in 30 seconds, by converting US dollars into tokens compliant with Ethereum’s ERC-20 standard.
Source: Signature bank
“This will significantly reduce costs, counterparty risk and settlement times," explained trueDigital founder and CEO Sunil Hirani to the Forbes.
The Signet Platform is going to be open to commercial clients with Signature Bank from January 1, 2019. Initially, the transactions will be free, but there will also be a minimum balance requirement of $250,000
Signature Bank’s digitized dollars, or signets, are designed to only work on the bank's proprietary Signet Platform and are not expected to interoperate with other exchanges and services built to accommodate the standard.
Deposits held within the Signet Platform are eligible for FDIC insurance, up to the legal insurable amounts defined by the FDIC. Because the platform is restricted to Signature Bank clients, all users must pass the bank’s anti-money-laundering and know-your-customer compliance.
Signet Platform has received approval from the NY State Department of Financial Services. This makes it the first bank to get regulatory permission to implement Blockchain technology in this capacity.
“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,” said Department of Financial Services Superintendent Maria T. Vullo
As of now, Signet platform will work with its native Signet tokens alone, but there’s a chance that other tokens may also be added in future.
You can read the full story here.
