The Department Of Financial Services Of New York Has Approved a Payments System Based On Blockchain

On Dec. 4, an official NYDFS  press statement stated that The Department of Financial Services of New York (NYDFS) has approved a blockchain-based digital platform offered by a regional bank.

Maria T. Vullo, NYDFS superintendent reported that the division approved. Therefore, The new service offering of New York-based Signature Bank for its digital payment platform Signet in the state. However, The affirmed framework apparently utilizes blockchain technology to enable bank customers to “transfer ‘Signets’ to make payments with no transaction fees, at any time of the day, year-round.”

Signet has been liable to a “comprehensive and rigorous review” and needs to conform to “critical administrative conditions.” In particular, the  “approval includes required conditions to ensure […] compliance with New York’s strong standards and regulations regarding anti-money laundering (AML), anti-fraud, and consumer protection measures.”

Hence, The framework purportedly enables funds “to be transferred in real-time between two commercial clients of Signature Bank, eliminating any dependence on a third party.”

In addition, Signet transactions are qualified for inclusion. By the Federal Deposit Insurance Corporation (FDIC), of which Signature Bank is a part. This organization endorses most private U.S. bank deposits “up to the legal insurable amounts defined.”

Newyork Is Continuing To Support Innovation

The division is “pleased to strengthen and foster regulated innovation […] specifically within our state-chartered banking system.”

                                                                     -Vullo pronounced

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

                                                             -The superintendent expressed

Signature Bank has $45.87 billion in resources, is a “full-service commercial bank with 30 private client offices throughout the New York metropolitan area.”

                                                                  -As per a press statement

However, This is the most recent improvement in the development of the New York blockchain industry. Crypto equipment wallet, Ledger, started a New York office to build up its institutional custody offering ‘Ledger Vault’ this November.

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