#162 Signature Bank Had $34B in Liquidity. They Shut It Down Anyway | Scott Shay, N3XT

Find us online: https://altfunds.io/ Email us with topic ideas: info@altfunds.io Spotify: https://bit.ly/4afXcan Apple Podcast: https://apple.co/4akXAUS Google: https://bit.ly/4am9oXk 👇 Click Below to be a guest on our video podcast: 👇 https://bit.ly/46X7cSQ Connect with Scott Shay: Website: https://n3xt.io/ X: https://x.com/N3XTinc LinkedIn:   / n3xtio   Background: Scott Shay — founder of four banks, including Signature Bank and its crypto network Signet. Now building N3XT Bank. Decades of banking experience, including as Vice Chairman of the Mid-Sized Bank Coalition of America. Description: In this episode of the **Alt Funds Network Podcast**, Mike Schroeder and Skyler Steinke sit down with **Scott Shay**, the founder of Signature Bank and its groundbreaking Signet payment network, to discuss the evolution of crypto banking, the collapse of Signature Bank, stablecoins, full-reserve banking, and his vision for the future with **N3XT**. Scott shares his firsthand perspective on how Signet enabled 24/7 blockchain-based payments and transferred more than $1 trillion before Signature Bank was shut down in March 2023. He explains what that experience revealed about the vulnerabilities of traditional fractional-reserve banking—and why he believes the financial system needs a fundamentally different model. The conversation then turns to N3XT, Scott’s vision for a *full-reserve U.S. bank* designed around fully backed digital dollars, on-chain payments, and a new approach to moving money globally. Scott explains how N3XT aims to create digital representations of U.S. dollars that can move between approved wallets while remaining backed by actual dollar deposits and bank capital. Scott also discusses the future of **crypto banking, stablecoins, tokenized deposits, digital dollars, blockchain payments, and financial infrastructure**, offering a unique perspective shaped by decades of experience building banks. Timestamps: 00:00 Introduction 01:00 Scott Shay's journey into banking 03:00 Building Signature Bank 05:00 The origins of Signet and crypto banking 07:00 How Signet enabled 24/7 payments 09:00 The rise of stablecoins 13:00 The banking industry's reaction to crypto 14:00 What happened to Signature Bank 18:00 The fundamental problem with traditional banking 21:00 Moving dollars like Bitcoin 23:00 Why Scott decided to build N3XT 26:00 Building a full-reserve U.S. bank 29:00 Tokenized dollars outside the bank 32:00 Full-reserve vs. fractional-reserve banking 34:00 How N3XT makes money 36:00 Crypto regulation and the future 38:00 The N3XT digital dollar 43:00 How traditional banks view crypto 45:00 The future of banking 47:00 What fund managers should know Disclaimer: Alt Funds Network LLC and its affiliates, episode guests, and the companies they represent do not provide tax, legal or accounting or investment advice. This material has been prepared for informational and educational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal, accounting, and investment professionals before engaging in any transaction or making any financial or legal decision based on your specific situation.