Forbes has recently revealed that one of the commercial bank, Signature is integrating Ethereum Blockchain based payment method. Founded in 2001, Signature bank enables institutional investors to transfer the money in 30 seconds. The new payment platform based on Ethereum blockchain is called Signet platform. It works 24/7 by converting US dollar into ERC 20 token.
According to Depaolo, Signature Bank co-founder and CEO, private application of Ethereum blockchain is a boom. He added
If you’re not involved in the blockchain, in five years, you won’t be around as a bank. Claiming that, we have to do this, otherwise we’re not going to exist.
Signet Develop to Overcome the Lack of Traditional Platform
In contrast to the new payment method, the traditional payment method like Swift interbank and Automated Clearing House (ACH) would accomplish within three days and moreover. It will not be available during the weekends. Considering this scenario, the Signature bank comes up with new blockchain based payment platform for institutional investors in partnership with trueDigital Holdings in New York. Presently, the service is available only to in-house customers and will soon be rolled out to the larger customers, the report revealed.
Signet platform will roll out in the bank for its clients on January 1, 2019, at 12.01 a.m. ET. , Sunil Hirani, trueDigital founder, and CEO assures that this new payment mode will mitigate the counterparty risk, costs and time required to settle the transactions as well. In addition, the launch will offer free transaction but likely to have a minimum balance of $250,000.
First Blockchain Platform With Regulatory Compliance
Reports also revealed that the token will not incorporate with other trading platforms. But will comply with only bank’s proprietary Signet platform. This platform has already pursued a green signal by the New York State Department of Financial Services. This is the first bank running blockchain platform by complying growth regulation.
In similar regards, Maria T. Vullo, Superintendent at Department of Financial Services states that;
New York continues to support and help advance innovation through sound state regulation, elaborating that with products such as Signet, which provides lower-cost ways for businesses to efficiently make payments.
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