New York State Department of Financial Services’ superintendent Maria Vullo announced the authorization of Signature Bank to offer a new digital payment platform named Signet. The Signet platform uses blockchain technology to allow the bank’s commercial clients to transfer “Signets” to make payments with no transaction fees, at any time of the day, year-round.
DFS’s approval includes required conditions to ensure that the bank maintains robust policies and procedures to address risks and ensure compliance with New York’s strong standards and regulations regarding anti-money laundering, anti-fraud, and consumer protection measures.
The ability to transmit funds at all times is an innovation for bank payment systems, allowing clients to make instant payments. The new Signet platform authorized by DFS today will allow funds to be transferred in real-time between two commercial clients of Signature Bank, eliminating any dependence on a third party. Deposits held within the Signet platform are eligible for FDIC insurance up to the legal insurable amounts defined by the FDIC.