N3XT joins Clear Markets’ Collateralizer network as dollar custodian for crypto derivatives

Crypto markets never close. Banks, historically, close every evening and take weekends off.

That mismatch is the problem N3XT and Clear Markets are trying to fix. On October 15, 2026, N3XT, a full-reserve narrow bank, joined Clear Markets’ Collateralizer network as a custodian for US dollar deposits.

Institutions can now pledge dollars held at N3XT as margin for derivatives traded on Clear Markets’ swap execution facility, known as CMSEF. Those trades include swaps, options, and forwards. The pitch is simple: collateral that can move whenever the market moves, around the clock.

How the setup works

Clear Markets supplies the collateral-management technology. N3XT handles custody and programmable payments. Neither party holds client funds directly inside the other’s system. Clear Markets opened an account with N3XT to support collateral management for derivatives on its platform.

CMSEF has been fully registered with the Commodity Futures Trading Commission since 2016. It serves institutional traders in digital-asset and crypto derivatives.

Shawn Dorsch, President of Clear Markets, emphasized the safety benefit of keeping collateral at an independent bank custodian. The point is separation: the venue running the trades is not the same entity sitting on the cash.

A bank built by Signature alumni

N3XT’s backstory explains a lot about its design. The bank was established by former Signature Bank executives and launched on December 4, 2025.

Scott Shay founded N3XT. Jeffrey Wallis leads it as CEO.

N3XT operates under Wyoming’s special-purpose depository institution charter. That charter requires it to maintain 100% reserves, held only in cash or short-term US Treasuries. Every dollar a customer deposits is backed 1:1 by cash or short-dated government debt sitting in reserve.

One important caveat: N3XT is not insured by the FDIC. Its safety case rests on its full-reserve structure rather than federal deposit insurance.

N3XT has also rolled out the N3XT Digital Dollar, or NDD. This is a tokenized version of its US dollar deposits, giving the bank balance a digital form that can move with the speed and programmability of on-chain assets, while still sitting on a bank’s books.

What this means for institutional crypto trading

The most immediate effect is practical. Institutions that keep dollars at N3XT could put those balances to work as collateral for continuous trading, instead of letting them sit idle when traditional banking rails are offline.

The custody structure is also worth noting. By keeping the trading venue and the cash custodian separate, the arrangement leans into a model that many institutions prefer after years of crypto-native platforms holding customer funds under one roof. Dorsch’s emphasis on independent custody suggests Clear Markets sees that separation as a selling point, not just a compliance checkbox.

N3XT is a young bank, operating for less than a year before this partnership. Its lack of FDIC coverage means clients are relying on the reserve model and Wyoming’s charter requirements rather than federal backstops.