N3XT joins Clear Markets' Collateralizer network for dollar derivatives custody
Summary
N3XT, a bank launched by former Signature Bank executives Scott Shay and Jeffrey Wallis, has joined Clear Markets' Collateralizer network, allowing institutions to use U.S. dollars held at N3XT as collateral for crypto derivatives trading around the clock. Established under Wyoming’s special purpose depository institution charter, N3XT must maintain liquid assets equal to 100% of deposits and is not FDIC insured. This integration caters to the ongoing shift in capital markets toward 24/7 trading environments, enabling firms to meet margin calls at any time without cash leaving the bank, enhancing the efficiency and security of collateral movements in the evolving derivatives landscape.
Analysis
N3XT: N3XT is a Wyoming-chartered special purpose depository institution bank launched in December 2025 by former Signature Bank executives. It focuses on holding cash and short-term U.S. Treasuries dollar-for-dollar against deposits without engaging in lending. In this news, N3XT joins Clear Markets’ Collateralizer network to serve as a custodian for U.S. dollar collateral supporting 24/7 crypto derivatives trading on the Clear Markets swap execution facility. Scott Shay: Scott Shay is the founder of N3XT and previously served as chairman of Signature Bank. He established the new bank to provide specialized dollar custody services under Wyoming’s special purpose depository institution framework. His role in launching N3XT directly enables the bank’s participation in Clear Markets’ collateral network for crypto derivatives. Shawn Dorsch: Shawn Dorsch is president of Clear Markets. He oversees the company’s technology platform and Collateralizer service that links custodians for derivatives margin without assuming custody of funds. Dorsch stated the goal of facilitating swaps and derivatives trading while keeping collateral at independent bank custodians. Clear Markets: Clear Markets operates the Clear Markets Swap Execution Facility (CMSEF), a CFTC-registered institutional venue for trading swaps, options, and forwards in crypto and other assets around the clock. It also runs the Collateralizer network as a standalone service connecting independent bank custodians for margin and collateral management without taking custody of client funds itself. In this development, Clear Markets integrates N3XT as a dollar custodian to enable institutions to pledge deposits held at the bank as collateral for derivatives. Jeffrey Wallis: Jeffrey Wallis serves as CEO and president of N3XT. He has emphasized the need for dollar infrastructure that supports instant movement aligned with 24/7 capital markets. In the announcement, Wallis highlighted how N3XT clients can now use securely held cash as collateral for digital asset and real-world asset trading. 24/7 Markets: Capital markets are shifting toward continuous trading environments that require always-available dollar infrastructure for margin and collateral movements. Custody Integration: Independent bank custodians are being incorporated into derivatives platforms to allow collateral to remain at the bank while supporting trading activity across time zones and non-business hours.
Categories
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