N3XT joins Clear Markets' Collateralizer network for 24/7 dollar margin
Wyoming-chartered bank N3XT has joined Clear Markets' Collateralizer network as a dollar custodian, enabling institutions to pledge cash collateral around the clock for crypto derivatives.
Wyoming-chartered depository institution N3XT has partnered with Clear Markets to serve as a dollar custodian within its Collateralizer network, according to an announcement reported by Unchained. The integration allows institutional investors to post U.S. dollars held at N3XT as margin for swaps, options, and forwards on Clear Markets' Swap Execution Facility (CMSEF), a crypto derivatives venue registered with the CFTC since 2016.[1][3]
Under the setup, N3XT holds the cash under account-control agreements, while Clear Markets provides the technology infrastructure and does not take custody of client funds. Because N3XT can transfer dollars between internal accounts at any hour, market participants can meet initial and variation margin calls on nights and weekends without funds leaving the bank. The companies said deposits at N3XT can also fund accounts at other exchanges or back loans.[1]
N3XT was launched in December 2025 by former Signature Bank chairman Scott Shay alongside CEO Jeffrey Wallis. Operating under Wyoming's Special Purpose Depository Institution charter, it is not FDIC insured and holds cash and short-term Treasuries equal to 100% of deposits. The announcement did not provide a go-live date, fee details, transaction volumes, or client names, though Crypto Briefing reported the partnership aims to enhance trading liquidity and security for institutional investors.[1][2][3]
Key facts
- N3XT joined Clear Markets' Collateralizer network as a dollar custodian for crypto derivatives margin.
- Institutional clients can pledge cash held at N3XT as collateral for swaps, options, and forwards on the CFTC-registered Clear Markets Swap Execution Facility.
- N3XT's internal 24/7 transfers allow institutions to meet initial and variation margin calls on nights and weekends without moving cash out of the bank.
- Clear Markets provides the Collateralizer technology and does not take custody of customer funds.
- N3XT operates under Wyoming's SPDI charter, holds 100% liquid reserves in cash and short-term Treasuries, and is not FDIC insured.
- Neither company disclosed a go-live date, transaction volumes, fee schedules, or client identities.
Sources · 3 sources
- UN
UnchainedArticle ·
N3XT Joins Clear Markets’ Collateralizer Network for 24/7 Dollar Derivatives Collateral Institutions will be able to post U.S. dollars held at N3XT as margin for crypto derivatives that trade around the clock, after the Wyoming-chartered bank joined Clear Markets’ Collateralizer network as a dollar custodian, the companies said in an announcement shared exclusively with Unchained ahead of its Thursday release. N3XT launched in December 2025 under founder Scott Shay, the former chairman of Signature Bank, which collapsed in March 2023, and Jeffrey Wallis, now its CEO and president. It operates under Wyoming’s special purpose depository institution charter, which bars lending and requires liquid assets equal to 100% of deposits. N3XT says it holds cash and short-term U.S. Treasuries equal to its deposits, dollar for dollar, and its website states the bank is not FDIC insured . “Capital markets are moving toward an increasingly 24/7 environment, and institutions need dollar infrastructure that can move instantly and with the markets,” Wallis said in the release shared with Unchained. Get Unchained’s crypto news in your inbox with the free Unchained Daily newsletter . How the Setup Works Per the release, the bank is the custodian, holding the dollars under account-control agreements, and Clear Markets is the technology provider, which the companies said never takes custody of client funds. Cash on deposit at N3XT can be pledged as collateral against swaps, options and forwards on the Clear Markets Swap Execution Facility (CMSEF), a round-the-clock institutional crypto derivatives venue with full CFTC registration since 2016, the companies said. The same dollars can also fund accounts at other exchanges or back loans, according to the companies. Clear Markets runs Collateralizer as a stand-alone service, separate from CMSEF, that ties together a group of independent bank custodians for margin and collateral work, the company said. Because N3XT moves dollars between its own accounts at any hour, the companies said, firms can answer initial and variation margin calls on nights and weekends, when crypto derivatives keep trading, without the cash leaving the bank. “Our goal is to make it easier for institutions to trade swaps and other derivatives while holding their collateral safely at an independent bank custodian,” Shawn Dorsch, president of Clear Markets, said in the release. The announcement did not give a go-live date, transaction volumes, fees or the names of any clients. In the release, Wallis said N3XT clients “can now use cash securely held at N3XT as collateral” for digital asset and real-world asset trading, while another passage of the same release says institutions “will be able to pledge” dollars. The companies said they plan to look for more uses of N3XT’s always-on dollar transfers. Related Listen: DEX in the City: When NYSE Goes Onchain, What Happens to Financial Intermediaries? The post N3XT Joins Clear Markets’ Collateralizer Network for 24/7 Dollar Derivatives Collateral appeared first on Unchained .
Open source - CB
Crypto BriefingArticle ·
N3XT joins Clear Markets’ Collateralizer network as dollar custodian for crypto derivatives This partnership enhances liquidity and security in crypto derivatives trading, potentially attracting more institutional investors to the market. The post N3XT joins Clear Markets’ Collateralizer network as dollar custodian for crypto derivatives appeared first on Crypto Briefing .
Open source - LS
Laura Shin@laurashinPost on X ·
N3XT, the bank launched by former Signature Bank executives, will custody dollar collateral for forwards, options and swaps on Clear Markets' swap execution facility. No go-live date, volumes or clients were disclosed. https://t.co/hxQ9SXPMr1
Open source