certify
Home arrow Article arrow Article Detail

Signature Bank’s Instant Blockchain Payment System Wins New York State Approval

Profile Image

Crypto Business World Follow

INDIA

Dec, 06 2018

Dec, 06 2018

likes | comments 0

Article Image

A New York State-chartered commercial bank, Signature Bank, has been awarded a permit to develop a blockchain-driven real-time payment system, the state’s Department of Financial Services (NYDFS) said on Tuesday. The project, called Signet Platform, is a joint initiative between the bank and trueDigital, a cryptocurrency exchange owned by New York’s swap market trueEX.

Signature Bank and trueDigital decided to use distributed ledger technology (DLT) because the blockchain allows settlement of transactions at any time with no need for a third party. Currently, the bank’s clients must send their payments within the working hours, which takes a lot of time, causes delays and worth significant amount of money, Joseph J. DePaolo, Signature Bank’s president and CEO explained. The DLT system will increase time efficiency and will significantly cut the operational cost at it eliminates the need for paper documentation and bank employee support.

The Signet Platform will have a minimum account balance requirement of $250,000 for clients.

 “There are many commercial enterprises and transactions that benefit from real-time payments capabilities, such as the wholesale energy distribution market and over-the-counter institutional trade and settlement activities, just to name a few,” DePaolo said in a statement.

NYDSF granted Signet Platform a permit after conducting an analysis of the initiative and its investor protection systems. The product will be subject to additional inspection by the regulator’s examiners and independent consultants. The project must follow several New York State requirements including anti-money laundering (AML) provisions, measures to prevent terrorist financing, and NYDFS’ transaction monitoring and cybersecurity regulations.

The Signet Platform, which will transmit US dollar payments, must also:

“Implement, monitor and update effective risk-based controls to prevent and respond to any potential or actual wrongful use of virtual currency, including but not limited to its use in illegal activity, market manipulation, or other similar misconduct,” NYDFS said.

New York is one of the most active US states in regulating the cryptocurrency industry. NYDFS has created a special virtual coin permit called a BitLicense, which has been granted to several projects including the Winklevoss’ twins Gemini exchange.


Source: Cryptovest



likes | comments 0

Profile Image

Crypto Business World

CBW - External Analyst

INDIA

Comments
Data Centre Construction - World First artificial intelligence AI-Tech Utility Token
banner
Article
BIS to Monitor Stablecoins, Focus on CBDC Experiments

The Bank for International Settlements (BIS), known as the "bank for central banks," plans to ramp up its research of central bank digital currencies (CBDCs) through its research and development arm..;

Disclaimer: The information is for informational purposes only.​ This advertisement does not constitute financial advice or any other advice. You should consult with a financial professional to determine what may be best for your individual needs. None of the information and/or content available through this advertisement is intended as an offer or solicitation of an offer to buy or sell, or as a recommendation, endorsement, or sponsorship of any company, financial product, security or commodity. To the maximum extent permitted by law, we disclaim any and all liability in the event any information, commentary, analysis, opinions, advice and/or recommendations prove to be inaccurate, incomplete or unreliable or result in any investment or other losses. In Making the investment decision, investors must rely on their own examination of the issuer and the terms of the offerings, including the merits and risks involved. Investments are speculative, illiquid, and involve a high degree of risk , including the possible loss of investment.