Yesterday New York-based Signature Bank
announced it has approval from the NY State Department of Financial Services for its real-time
blockchain-based payment platform. It enables commercial clients with minimum balances of $250,000 to make instant payments to other commercial clients of the same bank. The settlement is real-time and the system operates 24 hours a day, seven days a week.
But why is blockchain needed? Several European banks enable instant intra-bank transfers and have done so for many years. Though they usually have payment limits, but that’s more for security.
Nonetheless, the project is worthy of note. Firstly it was developed with trueDigital which was founded by Sunil Hirani. He also founded Creditex Group, the inter-dealer market for credit default swaps and bonds that was sold to ICE for $625 million in 2008. Additionally, he’s the co-founder of Digital Asset Holdings.
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