Competitors Prime Trust, Signature Bank Partner to Provide Instant Payments for Institutions

Crypto banking rivals Signature Bank and Prime Trust have collaborated in an attempt to appeal to institutional customers. 

Signature revealed January 6 that it would connect its Signet payments platform to Prime Trust’s multi-asset settlement platform, making another service providing “real-time” settlements for digital asset trades.

“Any Signature Bank commercial client participating on the Signet platform has the ability to make instantaneous payments in U.S. dollars, any time without transaction fees,” stated Joseph DePaolo, Signature Bank president and CEO in an official statement. “The relationship we have forged with Prime Trust will allow their clients to immediately settle their transactions through the revolutionary Signet platform.”

The service will enable institutional customers from both firms to make payments directly to each other whenever, without third parties or transaction fees.

The Signet system rolled out in December 2018 after winning endorsement from the New York State Department of Financial Services (NYDFS). It opened to Signature’s commercial customers, who require a minimum account balance of $250,000, on January 1, 2019. By February, the bank already professed to have on-boarded over 100 customers who were sending each other millions of dollars in cryptocurrency transactions every day.

State-licensed trust firm Prime Trust rolled out its settlement network back in July as an option aside from Signature. Having commonly pulled in an exchange clientele, including Bittrex and Huobi, it is the only publicly known financial services provider for Binance.US, the American partner company of Binance.

The rundown of banks ready to work with digital currency companies stays short over risk and compliance concerns. Subsequently, market share is mostly concentrated in a bunch of specific suppliers at which rivalry is warming up.

The digital currency exchange CEX.io, which utilizes Signature Bank, moved a portion of its retail and smaller payment operations to competitor banking provider Silvergate back in November. Prime Trust dropped custodial expenses to zero last January, undermining the vast majority of its competitors that charge somewhere between four and ten basis points every month.