Large U.S. banks are beginning to recognize the competitive advantage of blockchain-based payment infrastructure, potentially threatening mid-sized and smaller financial institutions that have been slower to adopt the technology. Scott Shay, the founder of Signature Bank and creator of its blockchain payments network, warned that this shift could reshape the banking landscape as digital assets move further into mainstream finance.

Why Are Big Banks Suddenly Interested in Blockchain Payments?

Shay explained that major banks are realizing there's significant profit potential in blockchain-based payment rails. "What's actually happening in the bank world is that the big banks are realizing that there's something in it for them," he said at Wyoming Blockchain Symposium 2026. "And if they can embrace, and to some degree extinguish, some of the people in the crypto world, then there's a market share for them." This suggests that traditional banking giants view blockchain adoption not just as a technological upgrade, but as a strategic weapon to consolidate market power.

Shay

The stakes are particularly high for mid-sized and smaller banks, which have been slower to invest in blockchain infrastructure. Shay, who previously served as vice chairman of the Mid-Size Bank Coalition of America, noted that he had actively encouraged other mid-sized banks to adopt blockchain technology, but many remained hesitant. This technological gap could leave them vulnerable as larger competitors move faster.

What Is N3XT, and How Does It Differ From Stablecoins?

Shay has since launched N3XT, a Wyoming-chartered special purpose depository institution built on blockchain technology. Unlike stablecoins like USDC (USD Coin) and USDT (Tether), which are digital representations of the U.S. dollar issued by private companies, N3XT offers actual U.S. dollar accounts backed one-to-one by cash or short-term U.S. Treasury securities.

The key distinction matters for businesses seeking dollar access without cryptocurrency volatility or counterparty risk. "Not a stablecoin, not a receipt for a dollar, not something that's interoperable, but actual U.S. dollars," Shay explained. N3XT allows account holders to send real dollars to approved recipients and wallets around the clock, with payments settling immediately on a private, permissioned blockchain.

This approach addresses a real market need. A global study conducted by BVNK with Coinbase and Artemis in February found that 54% of surveyed adults had held stablecoins during the previous year, while 56% planned to acquire more. However, demand for dollar access extends beyond crypto traders, particularly in countries with weaker currencies where people use stablecoins as substitutes for traditional banking.

How Is N3XT Positioning Itself in the Global Payments Market?

N3XT's initial client base spans multiple industries beyond cryptocurrency. The bank is targeting shipping and logistics, foreign exchange, and other sectors that require reliable dollar-denominated payments. Shay noted that shipping and logistics was already emerging as a significant application for Signature's Signet network before the bank's collapse in March 2023.

By the end of 2022, Signet was processing approximately a trillion dollars annually. While crypto transactions dominated the volume, freight forwarding and logistics represented a growing segment. "By the end of 2022, we were massive in crypto. But half the tickets, and maybe under 10% of the volume, was actually starting to be shipping and logistics," Shay said. Freight forwarders were particularly interested in dollar access rather than exposure to stablecoins, suggesting a broader market opportunity beyond digital assets.

Steps to Understanding the Stablecoin and Bank Payment Landscape

• Stablecoin Supply Context: Total stablecoin supply has risen above $290 billion, with Tether's USDT accounting for more than $183 billion and Circle's USDC at nearly $72 billion, making them dominant players in the digital dollar ecosystem.
• Bank-Based Alternatives: N3XT and similar blockchain-based banks offer actual dollar accounts rather than stablecoin receipts, appealing to businesses that want regulatory clarity and direct access to U.S. Treasury-backed reserves.
• Cross-Border Payment Demand: Strong demand for dollar access exists outside the U.S., particularly in emerging markets where stablecoins serve as alternatives to unstable local currencies or limited banking infrastructure.
• Trade Finance Opportunities: Programmable payments that automatically settle after delivery, customs clearance, and quality checks could reduce reliance on letters of credit and improve working capital efficiency for international traders.

Shay described trade finance as another significant opportunity for N3XT. The bank's launch materials highlight programmable payments for global trade, where transactions automatically settle after goods are delivered and customs and quality checks are confirmed. This model could reduce reliance on letters of credit, a centuries-old financial instrument that ties up working capital. "I think that'll be our big gig after that," Shay said, indicating that shipping and logistics expansion is a longer-term strategic priority.

Shay

The broader implication is clear: as blockchain technology matures and regulatory frameworks solidify, the competitive landscape in payments is shifting. Large banks with capital and infrastructure can adopt blockchain faster than smaller competitors, potentially consolidating market share. Meanwhile, alternatives like N3XT are carving out niches by offering blockchain-native solutions that traditional banks cannot easily replicate. For mid-sized and smaller banks, the window to invest in blockchain infrastructure may be closing.