Experienced former officials of New York-based Signature Bank have established a new financial institution, N3XT Bank, operating under Wyoming state regulations. This bank is a blockchain-powered narrow bank designed to provide customers with programmable US dollar payments available 24/7, without extending loans or accepting deposits. Unlike traditional banks that generate profits by lending deposited funds, N3XT Bank’s narrow banking model aims to offer more transparent, faster, and lower-risk financial services, marking a new trend in the digital currency era. Supported by prominent investors such as Paradigm and Winklevoss, the project demonstrates strong financial and technical backing. Leveraging blockchain technology, the bank will automate and secure payments, enhancing transaction speed and reducing the risk of fraud. This initiative emerges amid growing global adoption of digital banking and cryptocurrencies, attracting increasing interest from investors and users toward blockchain-based financial services. However, such new financial entities face regulatory challenges and market uncertainties. The future will reveal how effectively N3XT Bank expands its services and transforms traditional banking, particularly in the domain of US dollar payments, with the performance and security of its blockchain platform playing a crucial role in gaining customer trust.
Source: coindesk
