A new crypto-focused financial institution, N3XT, has officially launched in Wyoming, founded by former executives of the collapsed Signature Bank. Nearly three years after Signature’s shutdown in March 2023, the team—led by former chairman Scott Shay—is returning with a redesigned model built for stability, transparency, and uninterrupted payments.
A New Model for Crypto Banking
N3XT is positioning itself as a 24/7 instant U.S. dollar payments provider, catering specifically to crypto businesses that require constant liquidity. Jeffrey Wallis, who previously served as Signature Bank’s director of digital assets, will now lead N3XT as CEO. The bank will operate under Wyoming’s special-purpose depository institution (SPDI) charter, allowing it to offer banking services without engaging in traditional lending practices.
This move is intentional. Signature Bank’s past lending activities were a major contributor to its downfall, and N3XT’s leadership is determined not to repeat those mistakes. Wallis explained that the bank will not lend against its balance sheet, ensuring that client funds remain easily accessible at all times.
Full Asset Backing and Daily Transparency
Unlike traditional banks, N3XT will not rely on fractional-reserve banking. Every client deposit will be backed entirely by cash or short-term U.S. Treasuries, giving depositors complete liquidity. To reinforce trust, the bank plans to publish daily reserve disclosures, a level of transparency rarely seen in the sector.
However, N3XT will not be FDIC insured, as Wyoming’s SPDI charter exempts such institutions from federal deposit insurance. This comes at a time when several banks with large amounts of uninsured deposits have recently failed, underscoring ongoing risks in the crypto-finance sector. Despite this, Wallis emphasized that client safety is central to N3XT’s mission, reinforcing that the bank’s no-lending policy is designed to protect assets during market volatility.
Many crypto clients are already entering the onboarding phase as N3XT positions itself as a secure, always-on partner for digital-asset businesses. With its transparent operations and focus on liquidity, the bank aims to restore confidence in crypto-friendly banking after years of disruption.
