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The New York Department of Financial Services (NYDFS) has authorized a blockchain-based digital platform offered by a local bank, an official NYDFS press release said on December 4th.
NYDFS Superintendent Maria T. Vullo announced today that the department has authorized Signature Bank in New York to offer its digital Signet payment platform in the state. The approved system uses blockchain technology to allow bank customers to "transfer" Signets "to make payments without transaction fees, at any time of day, throughout the year."
The system presumably allows funds to "be transferred in real time between two Signature Bank business customers, eliminating any dependence on a third party." Signet has undergone a "complete and rigorous review" and must comply with "significant regulatory conditions".
That is to say, the approval includes the conditions required to guarantee […] compliance with the strong New York anti-money laundering (AML) standards, anti-fraud regulations and consumer protection measures. "
In addition, the Signet balances may be covered by the Federal Deposit Insurance Corporation (FDIC), of which the Signature Bank is a member. This company underwrites most of the US private bank deposits "up to the defined legal insurable amounts".
Vullo stated that the department is "pleased to strengthen and promote regulated innovation […] specifically within our state banking system. "The superintendent stated:
"New York continues to support and help advance innovation through solid state regulation and products like Signet …"
According to the press release, Signature bank is a "full service commercial bank with 30 private customer offices throughout the New York metropolitan area", which currently has $ 45.87 billion in assets.
This is only the latest development in the growing blockchain industry in New York. In November, Crypto Ledger's hardware portfolio opened a New York office to develop the institutional custody that Ledger Vault offers.
Coinbase, the largest U.S.-based cryptocurrency volume, has also obtained approval to offer crypto-custody services in the state in mid-October.
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