TheBlock
Scott Shay, the founder of Signature Bank and creator of Signet, used the Wyoming Blockchain Symposium 2026 to deliver a warning to mid-sized and smaller US banks: large incumbents are waking up to blockchain payment rails and intend to use them to capture market share. "What's actually happening in the bank world is that the big banks are realizing that there's something in it for them," Shay told The Block. "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."
Why it matters
Shay's warning lands as the underlying market is moving past the early adopters. Total stablecoin supply has climbed above $290 billion, with Tether's USDT at more than $183 billion and Circle's USDC close to $72 billion, according to The Block's data dashboard. A February survey of 4,658 adults by BVNK, Coinbase, and Artemis found that 54% had held stablecoins in the prior year and 56% planned to acquire more. The growth is no longer just crypto trading desks.
N3XT's structure is the part traders should study. Each dollar of deposits is backed one-to-one by cash or short-term US Treasuries, and the bank does not lend out customer deposits. Settlements are programmable and immediate, bypassing correspondent banking. The bet is that cross-border dollar demand, especially in countries with weaker currencies, plus shipping and trade finance, will eventually be bigger than crypto trading.
Market impact
The competitive read is consolidation risk. Shay, who previously served four years as vice chairman of the Mid-Size Bank Coalition of America, argued that mid-sized and smaller banks have been slower to adopt blockchain payment infrastructure and are now exposed to incumbents racing to fill the gap. He said roughly half of Signet's tickets by end of 2022 were in shipping and logistics, with freight forwarders preferring actual dollars to stablecoins. Trade finance, with payments and documents moving automatically after delivery and customs clearance, is the next frontier for N3XT.
Frequently asked questions
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Who is Scott Shay and why does his warning carry weight?
Shay founded Signature Bank and built its Signet blockchain payments network, which was transferring $1T by end of 2022. He watched Signature get seized in March 2023 after an $18.6B deposit run, then returned to banking with Wyoming-chartered N3XT.
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What is N3XT and how does it differ from a stablecoin?
N3XT is a Wyoming-chartered special purpose depository institution that lets businesses send actual US dollars 24/7 on a private, permissioned blockchain. Each dollar is backed 1:1 by cash or short-term Treasuries, and the bank does not lend out deposits.
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How big is the stablecoin market right now?
Total stablecoin supply has crossed $290B, with Tether's USDT accounting for more than $183B and Circle's USDC close to $72B, according to The Block's data dashboard.
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Is stablecoin adoption spreading beyond crypto trading?
A February survey of 4,658 adults by BVNK, Coinbase, and Artemis found 54% had held stablecoins in the prior year and 56% planned to acquire more. Shipping, logistics, and cross-border payments are cited as emerging application areas.
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Why do shipping and logistics matter for blockchain-based bank rails?
Shay said roughly half of Signet's tickets by end of 2022 were in shipping and logistics, with freight forwarders preferring actual US dollars to stablecoin exposure. Trade finance, with payments and documents clearing automatically after delivery, is N3XT's next target.
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