New York’s Financial Services Department Authorises Bank-Offered Blockchain Platform

As per the official press release, on 4th December, The Department of Financial Services of New York (NYDFS) has authorized a blockchain-based digital platform offered by a local bank. This announcement was made made by NYDFS superintendent Maria T. Vullo who said that the department had authorized New York-based Signature Bank to offer its digital payment platform Signet in the state. The system according to reports will be using blockchain technology to facilitate their clients to use “transfer ‘Signets’ to make payments with no transaction fees, at any time of the day, year-round.”

Signature bank is a “full-service commercial bank” which boasts of 30 private client offices across the entire New York metropolitan area andnas of now handles $45.87 billion in assets.

The system is to function by allowing funds “to be transferred in real-time between two commercial clients of Signature Bank, eliminating any dependence on a third party,” provided that Signet adheres to all existing laws and regulations.

The approval is inclusive of all required conditions to ensure and facilitate compliance with New York’s strong standards and regulations regarding anti-money laundering (AML), anti-fraud, illegal punishable activities and other consumer protection measures.

Along with this, Signature Bank is a member of the Federal Deposit Insurance Corporation (FDIC), which makes Signet eligible for coverage.

Vullo also mentioned that the department was indeed “pleased to strengthen and foster regulated innovation […] specifically within our state-chartered banking system.”

He, in his statement said,

“New York continues to support and help advance innovation through sound state regulation and with products such as Signet…”

However, these kinds of authorizations are becoming more and more common, with only recently, Coinbase and Ledger having cut similar deals.