Banks are not seamless payment centers where transactions process instantly. Payments have to settle through third-party services, like SWIFT, and can take days. Trading cryptocurrencies was supposed to be a real-time antidote to the problem. However, digital asset market adoption compared to fiat currency was always small. Institutional players and large retail investors only dabbled in cryptocurrencies and stablecoins because of compliance, security and fraud risks. But could this be changing as new services challenge established providers? Real-time settlement for both digital and cash payments could be at hand.
Yesterday, Signature Bank, based in New York, announced a new client service – a blockchain-based digital payments platform called Signet, with Fireblocks. Michael Shaulov, CEO and co-founder of Fireblocks, said, “Our private beta increased our transaction volume by about 15%. I believe this new service will help increase trading between fiat currency, stablecoins and other digital securities.”
Fireblocks is an enterprise-grade platform that settles digital security transfers between members and exchanges. Fireblocks serves digital asset exchanges, custodians, banks, trading desks and hedge funds like SWIFT serves the currency markets. Signature Bank can now enable their commercial clients to access its blockchain-based, real-time payments platform through the Fireblocks network.
This is significant because any Signature client can utilize the service to move crypto and fiat cash between accounts in real-time. Traders can now wire fiat currency between exchanges at 5 a.m. on a Saturday, for example.
This integration with Fireblocks affords institutions greater capital efficiency and security between fiat and cryptocurrency payments. Signature Bank clients can now use Signet to initiate transactions at the bank directly through the Fireblocks network.
“The integration with Fireblocks will offer enhanced services to our clients. With this latest banking technology innovation, Signature Bank remains at the forefront as we advance our Signet product and its capabilities. As the digital needs of our clients continue to evolve and the broader adoption of asset tokenization increases, Signet APIs are yet another example of how we continuously strive to help our clients deliver better business performance and improve their operations,” said Joseph DePaolo, president and chief executive officer at Signature Bank.
Previously this year, Fireblocks announced its services had been used to secure $30 billion in digital asset transfers cumulatively since its launch. The company also implemented a one-step confirmation service for its customers in early 2020.