There has been a great reformation through blockchain technology in banking lately, as a result of which most of the top leading banks of the world have drifted towards this new ledger form. There is a significant adopting of blockchain in recent times within the payments systems because of its unique and impeccable features that have enhanced the entire process to a great extent. In a recent update, the New York-based Signature Bank has been approved by The Department of Financial Services of New York (NYDFS) to begin its digital payment platform Signet.
Signet is a blockchain powered platform that will facilitate the bank clients to make a transfer or payments without any additional transaction cost throughout the year. This system is said to be permitting fund transfer in real-time between the commercial users of Signature Bank sans the involvement of any third party between them. Signet has been through a rigorous comprehensive analysis and review along with compliance with all the regulatory standards.
NYDFS Superintendent Maria T. Vullo stated that their department is contented to reinforce and foster this unique innovative platform in the fintech sector. She further added that New York continues to encourage and support the innovative products like Signet that can increase the efficiency of the payment system and reduce the cost also with the help of blockchain technology in banking as mentioned by DFS of New York.
Digital Platforms And Their Control
According to The New York Times, indeed blockchain can be considered as a safe platform for making the payment transfer within a bank. However, such digital economies are run over the trust which is foster by those who control such platforms. Here, there is an entire control over the mechanism which lays the roadmap for the long-term establishment and overall ratings in the future.
Blockchain technology in banking is fostering a trust between the user and bank, and therefore it can be said that this is a successful payment system foundation for the new generation fintech.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]