Home / Blockchain / Blockchain: Crypto Could Displace Fiat Payments Sooner Than You Think

Blockchain: Crypto Could Displace Fiat Payments Sooner Than You Think

Blockchain:

Blockchain: In this photo illustration banknotes of the pound sterling,...

UNITED KINGDOM – 2020/06/06: In this photo illustration banknotes of the pound sterling, The Bank of … [+] England £20 notes with the image of Queen Elizabeth II are seen in a woman’s hand. (Photo Illustration by Karol Serewis/SOPA Images/LightRocket via Getty Images)

SOPA Images/LightRocket via Getty Images

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 DePao

Read More

About admin

Check Also

Blockchain: Blockchain Could Be The Key To Making ESG Reporting More Meaningful

Blockchain: Blockchain Could Be The Key To Making ESG Reporting More Meaningful

Environmental, social, and governance (ESG) reporting initiatives continue to accelerate, with billions of dollars of investments announced on an ongoing basis. That said, ESG reporting is not without its challenges; blockchain has the potential to help tackle several headwinds keeping ESG from having the impact it otherwise should. Getty At first glance the convergence of…

Leave a Reply

Your email address will not be published. Required fields are marked *