US Banking For Licensed FinTech Companies

February 28, 2019 | 13 Comments

The Government announced that “Bermuda can now offer an option for US banking services to Bermuda licensed FinTech companies,” as “Signature Bank, a New York-based full-service commercial bank, has agreed to provide a full range of banking services to companies that meet Bermuda and Signature Bank standards.”

A Government spokesperson said, “As a result of confidence in Bermuda’s high regulatory standards, the Government is pleased to announce that Bermuda can now offer an option for US banking services to Bermuda licensed FinTech companies.

“Signature Bank, a New York-based full-service commercial bank, has agreed to provide a full range of banking services to companies that meet Bermuda and Signature Bank standards. Signature Bank is a dynamic financial institution that was an early entrant into digital asset space.

“Signature Bank is a leader in embracing highly regulated players in the Fintech and digital assets industry. They are the first bank to launch a New York regulator-approved blockchain-based platform for managing money transfers between clients, months before J.P. Morgan announced their own similar JPM Coin initiative.”

Premier David Burt stated; “The Government has been working diligently to promote Bermuda as the destination of choice for FinTech companies looking for a place to domicile.

“We produced progressive legislation in 2018 and have established Bermuda as a leader in the FinTech industry. Bermuda is respected as a well-regulated and legislated jurisdiction in the FinTech space and companies know that this is a safe place to live and work.

“As a result of our business development and promotional efforts, 66 FinTech companies have been incorporated in Bermuda. However, the absence of banking services for FinTech companies has been an impediment to those companies who are looking to establish a physical presence in Bermuda.”

“Banking for the FinTech sector has been a considerable challenge around the globe. Banks have been reluctant to take on the risks of dealing with digital assets for fear that they may fall foul of global compliance regulations. Signature Bank’s willingness to consider Bermuda licensed businesses for banking services is a significant vote of confidence in and endorsement of Bermuda’s efforts to create a leading high standard regulatory regime for FinTech business.”

“Bermuda is setting itself apart by providing regulatory certainty combined with a world-renowned reputation for transparency and the highest standards of global compliance. Signature Bank’s endorsement showcases how Bermuda is competitively placed to advance the pace of the digitization of global commerce as modern technology is applied to the highly regulated world of finance.”

The Government added, “Signature Bank is willing to accept banking applications from Bermuda-licensed companies starting today. Please contact the Fintech Business Unit at fintech@gov.bm or visit www.fintech.bm for more information on how you can apply for an account with Signature Bank, issue digital assets or be licensed to conduct digital asset business in Bermuda.”

Joseph J. DePaolo, President and CEO at Signature Bank, also explained the quick progress of Signature Bank’s blockchain-based Signet system: “Since launching at the start of the year, our blockchain based Signet system has on-boarded multiple clients who are using it to send each other millions of dollars, 24 hours a day, 7 days a week.”

DePaolo continued, “We look forward to vetting Bermuda’s licensed Fintech companies referred to us by the Government of Bermuda as potential clients.”

“We are impressed with the progress Bermuda has made to date on a regulatory front, and look forward to working with the Government of Bermuda to help promote growth and expansion of the FinTech and digital asset industry in that country,” noted John Tamberlane, Vice Chairman at Signature Bank.

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Comments (13)

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  1. Retro says:

    If you feel hopeful about this I wouldn’t recommend looking up the bank on Wikipedia.

    • What?? says:

      I would highly recommend looking it up in Forbes, The Wall Street Journal or any other financial publication. It is a highly rated bank.

      • Correct says:

        Don’t worry the OBA trolls and Dunkley will try to crucify them in certain media! Anything to derail Bermuda!

      • Retro says:

        Not so sure about that but it’s definitely a topical bank .

    • TJ says:

      Wikipedia isn’t a viable source. Please use other business publications to do your research on this bank.

  2. LaV says:

    ” It is a highly rated bank.”

    It’s the bank of choice for republicans and plp drones…:)

  3. legalgal says:

    Signature Who/What? If a reputable bank such as JP Morgan’s services were available that may be worthy of consideration.

  4. This is good news for Bermuda .Now we need new banks to offer retail services to locals . This could be seen in the form of new mortgage and loan ,along with lower interest rates . After 10 years of 0% on savings ,all the while with fees being increased , It About Time For The Little Man To Get Something Back .

  5. Stephen Thomson says:

    Great news for Bermuda.
    We need to be Bold and embrace change.
    Not everything will be immediately successful, but we need to try.
    Well done BDA Government and well done Signature Bank.
    Let’s make this work.

  6. Rocky5 says:

    So BMA has issued Signature Bank with banking licence?

  7. trump supporter says:

    I guess this is where the gold is.
    But be careful the Premier might attack the media if this deal falls through.

  8. Onion says:

    So it’s “signet” blockchain platform is no better than Butterfield’s online banking platform.

  9. Joe Bloggs says:

    I am now getting concerned that our Government thinks it should be promoting banks and banking business. This does not appear to be a case of a foreign bank seeking to do business with Bermuda companies (I would have not issue with that), this appears to be a case of the Bermuda Government going out and enticing a foreign bank to do business with Bermuda companies. I do not see the Bermuda Government going out and getting a foreign bank to do business with my employer or for me, so I wouldn’t have to pay a compliance fee as well as maintenance fees to my Bermuda bank every month.

    That position coupled with the Governments stated intention to set up a mortgage business to give mortgages to civil servants at discount rates smacks of Government getting into the banking business.

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