Scott Shay, founder of Signature Bank and creator of its former Signet blockchain payments network, said large U.S. banks could use blockchain-based payment systems to gain ground in payments, trade services and cross-border transactions, placing added pressure on mid-sized lenders that have been slower to build digital-asset infrastructure.
Speaking with Kelvin Sparks at the Wyoming Blockchain Symposium 2026, Shay argued that banking’s next competitive divide may center on whether institutions can move dollars continuously, program payment conditions and connect corporate clients through digital rails. His comments come as Shay launches N3XT, a Wyoming-chartered special purpose depository institution designed to offer round-the-clock programmable U.S. dollar payments without issuing a stablecoin.
Shay’s view carries particular weight because Signature Bank was among the earliest U.S. lenders to operate a large blockchain-enabled payment network. Signet allowed approved customers to transfer dollars between accounts at any hour, including weekends, and Shay said the system was “transferring a trillion dollars on the system” by the end of 2022.
Signature Bank was seized by U.S. regulators in March 2023 after depositors withdrew more than $10 billion on a Friday, CNBC reported at the time. The failure followed the collapse of Silicon Valley Bank and heightened concerns about uninsured deposits across regional lenders. Signature reported $110.36 billion in assets and $88.59 billion in deposits at the end of 2022.
N3XT places dollar deposits on permissioned rails
N3XT is structured as a full-reserve bank, according to its launch materials. The company says every dollar of customer deposits is backed one-to-one by cash or short-term U.S. Treasuries and that it does not lend those deposits. That structure separates its model from conventional fractional-reserve banking, where banks use a portion of deposits to make loans.
The bank’s system is intended to move actual dollar claims between customers and approved wallets rather than circulate a privately issued stablecoin. N3XT says its private, permissioned blockchain can settle payments immediately among participants without waiting for an outside correspondent bank or clearing institution.
That design could appeal to companies whose payment needs do not fit conventional bank operating hours or multiday cross-border settlement processes. N3XT has identified early clients in cryptocurrency, shipping and logistics, foreign exchange and related sectors.
Unlike open blockchain networks, a permissioned system restricts access to approved participants. N3XT says it uses allow-listed recipients and wallets, giving the bank a direct compliance role in determining which entities can receive funds on its network. The arrangement may be more acceptable to regulated businesses than systems where tokens can be transferred freely among pseudonymous addresses, though it also gives users less of the open access associated with public blockchains.
Stablecoins remain the larger dollar-onchain market
N3XT is entering a market where stablecoins already provide a widely used method for moving dollar-linked value across blockchain networks. The market snapshot provided for the symposium placed total stablecoin supply above $290 billion, including more than $183 billion of Tether’s USDT and nearly $72 billion of Circle’s USDC.
A February study by payments company BVNK, conducted with Coinbase and blockchain analytics firm Artemis, surveyed 4,658 adults globally. It found that 54% had held stablecoins in the preceding year and 56% planned to acquire more. The study said use was expanding beyond trading, although its survey results should not be treated as a measure of total global adoption.
Shay is aiming at a different part of the dollar-access market: businesses and users seeking a dollar-denominated bank account and payment service rather than a digital token. He pointed to international demand for dollars in jurisdictions where local currencies are less stable or harder to use for global commerce.
The distinction is practical for companies handling payroll, trade invoices or large settlement flows. A stablecoin transfer may provide speed and broad network reach, while a bank-issued account model could offer a more familiar legal and compliance framework for organizations that need verified counterparties and regulated custody of dollar balances.
Trade workflows are a central target
Shay said shipping and logistics were beginning to emerge as a meaningful Signet use case before Signature’s failure. By the end of 2022, roughly half of Signet’s payment “tickets” came from shipping and logistics, he said, although the sector represented less than 10% of total payment volume.
N3XT is building on that experience with programmable payment features for global trade. Its materials describe transactions that could release payment automatically after delivery, customs clearance and quality checks are confirmed. Such arrangements could connect the movement of goods, documentation and funds in a single workflow.
That approach could reduce some reliance on letters of credit, which are commonly used to protect exporters and importers when they lack an established trading relationship. Letters of credit can tie up bank credit lines and require document reviews across several parties. Automating defined release conditions would not remove the need for dispute resolution or verification, but it could shorten routine payment processes when all parties agree on the relevant data.
Large banks face a strategic choice
Shay’s warning for smaller banks rests on the cost and complexity of building compliant, always-on payment infrastructure. Large banks have more capital, deeper technology teams and existing corporate relationships that could help them connect blockchain settlement tools with cash management, foreign exchange and trade-finance services.
Mid-sized institutions also face a difficult calculation. They can develop their own networks, join shared infrastructure, partner with specialized providers, or risk losing customers that want continuous settlement and programmable workflows. Shay previously served four years as vice chairman of the Mid-Size Bank Coalition of America, giving him direct experience with the competitive constraints facing regional lenders.
N3XT’s model will test whether regulated, full-reserve dollar accounts can win business alongside stablecoins and traditional correspondent banking. Its prospects will depend on client adoption, the range of institutions willing to join its permissioned network, and whether its settlement features deliver operational savings for businesses moving money across borders.
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