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Ex-Signature Bank chair warns big banks may outpace smaller rivals

Scott Shay, founder of Signature’s Signet network, said N3XT plans to expand blockchain payments into areas like shipping and logistics, while warning mid-sized banks face higher adoption risk.

Reported · Written up by our desk · Market Structure

Ex-Signature Bank chairman Scott Shay warned that large U.S. banks could use blockchain-based payment rails to win market share from mid-sized and smaller competitors as digital assets move further into mainstream finance, according to The Block.

Shay said mid-sized and smaller banks may be more exposed because they have tended to adopt blockchain payment infrastructure more slowly, and he argued big banks have incentives to embrace blockchain capabilities.

He also connected the outlook to his earlier work at Signature, where the Signet network was designed for payments and, Shay said, was “transferring a trillion dollars on the system” by the end of 2022.

Looking ahead, Shay said his N3XT venture is expanding globally with a focus on dollar payments and that the company also plans to target shipping and logistics, which he said was already becoming a major use case for Signet before Signature’s 2023 collapse.

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