Signature Bank Launches Blockchain Real-Time Payments For Corporates

Signature Bank Launches Real-Time Payments

New York-based Signature Bank is rolling out a digital payments platform powered by blockchain that enables real-time payments for corporate customers.

The financial institution announced on Tuesday (Dec. 4) the launch of its payments platform, Signet, to provide digital payment services for corporate customers. The platform was developed in partnership with blockchain company trueDigital Holdings, Signature noted, and will go live on Jan. 1, 2019.

“Signet will quickly prove to be extremely beneficial and revolutionary for our commercial clients, as they will now be afforded the opportunity to make instantaneous USD payments to one another in real-time (24x7x365) at no cost per transaction,” said the bank’s Chairman of the Board Scott A. Shay in a statement.

Shay pointed to use cases for commercial real-time payments, including within the “wholesale energy distribution market and over-the-counter institutional trade and settlement activities.”

The solution enables corporate payments made in real time at any time throughout the year without transaction fees. Companies must have a minimum of $250,000 in their accounts to conduct payments using the platform.

In its announcement, Signature noted that rather than funds requiring the intervention of two different financial institutions to move money between two parties, the platform enables funds to be moved in real time between corporate customers, as long as both are clients of Signature Bank.

The bank said the New York State Department of Financial Services has provided approval for the platform, and deposits held within Signet are eligible for FDIC insurance.

In a statement, Signature Bank President and Chief Executive Officer Joseph J. DePaolo said the ability for corporates to make real-time B2B payments is “very valuable, especially in light of the increasing speed and frequency at which they conduct their business.”

He noted the support of the state’s Superintendent Maria Vullo and the Department of Financial Services, which, he added, have “thoroughly researched the financial technology arena and understand how it impacts the future of financial services.”