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As Signature Bank expands its commercial banking offerings, the trueusd stablecoin has been integrated with its Signet blockchain-based digital payment platform to deliver instant dollar payments.
Signet Integration to Deliver 24/7 Dollar Payment and Settlement
As more enterprises flirt with the idea of blockchain-based products and services, stablecoins are one of the areas of fascination for banks, especially given their possibilities in terms of speed and reliability.
Yet, not all stablecoins are the same, and some have been targeted by enforcement agencies, among them tether (USDT). Still, some are breaking the mold and finding ways to improve upon the existing model. With stablecoins increasingly playing a larger role in trading and decentralized finance (defi), banks are slowly coming around to realize their beneficial traits.
Signature Bank has become the first U.S. financial services provider to adopt stablecoins specifically for payments. Its Signet digital payments platform has entered into a partnership with Trueusd to integrate its multichain stablecoin (TUSD) with its payment services. Accordingly, the platform can now offer TUSD minting and redemption in real-time.
The move will give the bank’s clients access to the stablecoin, which is transparently backed 1:1 by reserves of US dollar that are regularly verifiable thanks to onchain proof-of-reserves and the help of an outside, independent accounting firm. Moreover, the platform’s customers can send US dollar payments to other commercial clients in real-time, around the clock, every day of the week.
Signature Bank, the first FDIC-insured and New York State Department of Financial Services (NYDFS) approved U.S. commercial bank to launch a blockchain digital payments platform, has welcomed the development.
According to Signature Bank’s CEO and President Joseph J. DePaolo:
The relationship with Trueusd enhances Signature Bank’s offering to its existing commercial clients. Through arrangements like this one, Signature Bank is further strengthening its position as one of the pre-imminent banks in the digital assets space.
Trueusd, the product of Trusttoken, counts on billions in monthly transaction volume, with approximately $1.4 billion tokens in circulation as of writing. Thanks to its properties like real-time payment and settlement, along with a network of 100 global trading partners, TUSD has become a popular choice for defi protocols and other use cases that demand instant transactability.
Trueusd Chairperson Jennifer Jiang concludes,
The integration into Signature Bank’s Signet platform is a monumental milestone for TUSD’s growth and adoption as an attested, dollar-backed digital currency. Our integration into Signet brings global TUSD customers another secure real-time settlement option.
What’s next for the banks’ crypto adoption? Let us know what you think in the comments section below.
Image Credits: Shutterstock, Pixabay, Wiki Commons
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