New York-Based Signature Bank to Offer Services to Fintech Firms in Bermuda
Signature Bank, a New York-based bank with its own blockchain platform, will offer monetary services to fintech companies in Bermuda.
New York-based business bank Signature Bank will begin offering financial services to fintech firms in the island country of Bermuda, regional news daily the Royal Gazette reports on Feb. 28. According to the Royal Gazette, banks in Bermuda have actually mainly avoided handling the fintech industry, which is in need of monetary services. Bermudian Premier David Burt stated:
“Signature Bank’s willingness to consider Bermuda-licensed businesses for banking services is a significant vote of confidence in and endorsement of Bermuda’s efforts to create a leading high standard regulatory regime for fintech business.”
It was reported that a government announcement stated that Signature Bank “has agreed to provide a full range of banking services to companies that meet Bermuda and Signature Bank standards.” Signature Bank Vice-Chairman John Tamberlane commented:
“We are impressed with the progress Bermuda has made to date on a regulatory front, and look forward to working with the Government of Bermuda to help promote growth and expansion of the fintech and digital asset industry in that country.”
Bermuda Embraces Fintech
Bermuda has revamped its regulatory structures to accommodate crypto, blockchain and fintech organizations. In July 2018, the federal government amended the Banks and Deposit Companies Act 1999 to create a brand-new class of bank for blockchain and fintech companies. Premier Burt then said, “The fintech industry’s success internationally depends on the capability of business running in this space to enjoy the needed banking services.”
That very same month, the government proposed brand-new policies for preliminary coin offerings (ICOs). The guidelines needed Bermudian ICO providers to supply comprehensive details about the projects including “all individuals involved with the ICO.” The federal government awarded its first accreditation under the brand-new program in October 2018.
“As a result of our business development and promotional efforts, 66 fintech companies have been incorporated in Bermuda.” Burt told the Royal Gazette today.
In December 2018, the Department of Financial Services of New York authorized a blockchain-based digital platform offered by Signature Bank called Signet. The bank’s CEO Joseph DePaolo told the Royal Gazette:
“Since launching at the start of the year, our blockchain based Signet system has on-boarded multiple clients who are using it to send each other millions of dollars, 24 hours a day, seven days a week. […] Currently, we are seeing trades in the millions some days and tens of millions other days, with the number of Signet clients in the triple digits.”