Ex-Signature Bank Execs Launch N3XT: The Full-Reserve Blockchain Bank That’s Rewiring Finance

Forget fractional reserve—this is finance with a full tank. A team of former Signature Bank executives just pulled the curtain back on N3XT, a new breed of bank built entirely on blockchain rails. It's not just another crypto-friendly institution; it's a structural overhaul.

The Full-Reserve Mandate

N3XT's core promise is radical transparency. Every customer deposit gets matched one-to-one with high-quality liquid assets held in reserve. No more lending out your money ten times over. The model uses blockchain's immutable ledger to provide real-time, verifiable proof of reserves—a direct counterpunch to the opacity that has plagued traditional and crypto finance alike.

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The founding team isn't a group of crypto anarchists. They're seasoned bankers who saw the flaws in the legacy system up close. Their playbook leverages smart contracts to automate compliance and custody, aiming to slash operational costs and—ironically—bypass the very regulatory gray areas that eventually consumed their old shop. It's a bet that the future of trust isn't in a vault, but in verifiable code.

A Provocative New Blueprint

N3XT cuts out the traditional correspondent banking web, offering direct blockchain settlement. It bypasses the multi-day wait for ACH transfers. The platform is positioning itself as the essential infrastructure for the next wave of institutional crypto adoption, offering the security and familiarity of a bank charter with the efficiency of DeFi. One might call it the ultimate 'have your cake and eat it too' move for finance—a rare feat in a sector better known for taking your cake and charging a custody fee.

This launch signals a pivotal shift: the builders who once operated within the old walls are now using the tools they once regulated to lay new foundations. Whether N3XT becomes a resilient new standard or just a very expensive proof-of-concept depends on whether the market values ironclad reserves over the seductive, profitable leverage of the old world. The gamble is clear: in the wake of banking crises, maybe the real innovation isn't a new asset, but an old idea—actually having the money you say you do.

What is N3XT and who is behind it

N3XT is co-founded by Signature’s Founder Scott Shay, and will be led by Jeffrey Wallis, who previously directed digital‑asset and Web3 strategy at Signature. 

It’s been a long time coming. Today, I am extremely excited to announce the launch of N3XT.

As CEO, I could not be prouder of the team that brought this vision to life. Together, we've built a safer, faster, more modern foundation for how businesses MOVE money. https://t.co/TrDpVJYIo5

N3XT obtains a Wyoming Special‑Purpose Depository Institution (SPDI) charter, a regulatory structure that allows it to operate globally without engaging in traditional bank lending. 

Why N3XT matters and how it works

N3XT aims to revive some of the strengths Signature once offered, but with a different risk model. The new bank uses a private, permissioned blockchain to settle transactions instantly, 24 hours a day, seven days a week, enabling businesses to make programmable payments through smart contracts. 

Jeffrey Wallis, CEO & President of N3XT, said, “We’re applying crypto innovations to banking to deliver instant, programmable payments for institutional clients. Our platform gives businesses the control and reliability they need in a 24/7 global economy.”

This could be a major upgrade over traditional banking systems, which often require days for business‑to‑business transfers. Most importantly, N3XT follows a full‑reserve or narrow bank model, every deposit is backed one-to-one by cash or short‑term U.S. Treasuries, and the bank says it will publish reserve holdings daily. 

N3XT will not lend deposits out, a sharp contrast to many traditional banks, eliminating credit‑risk but also meaning it won’t offer traditional banking services.

Signature Bank collapse to N3XT launch

Signature Bank was shut down by regulators in March 2023, making it one of the largest banking failures in U.S. history. Its collapse followed a wave of rapid deposit withdrawals triggered by wider concerns over banking stability and exposure to the crypto industry. 

Hack Co-Founder Alexander Pack said in an X post that the founders of Signature Bank had previously built “the biggest and best bank to support the US crypto industry in a regulated way,” before the last administration forced them to shut down. Most founders WOULD quit after something like that, but instead they immediately went back to work building N3XT.

I'm incredibly excited to support N3XT in their mission to make crypto banking happen in the US again.

N3XT's founders, Scott and Jeff, are forces of nature: they previously built Signature Bank, the biggest and best bank to support the US crypto industry in a regulated way,… https://t.co/27NPCCL8jc

At Signature, the bank had offered a crypto‑friendly payment network called Signet, which allowed crypto firms to move money 24/7. 

N3XT appears to draw on the Signet experience, but replaces Signature’s broad commercial banking model with a lean, blockchain‑native payments infrastructure and a strictly full‑reserve structure. 

N3XT target clients and future plans

At launch, N3XT says its primary clients will come from crypto, foreign exchange, shipping, logistics and other sectors that benefit from instant global payments. 

The bank has already raised capital from prominent backers including Paradigm, Winklevoss Capital and HACK VC among others. By steering clear of lending and backing deposits fully with liquid assets, N3XT hopes to avoid the liquidity and risk failures that sank Signature. 

Whether this model can gain trust and traction remains to be seen, but N3XT signals a renewed attempt to merge banking regulation with crypto‑era payment technology.

Also Read: IMF: Stablecoin Growth May Push Banks Toward Tokenization