This piece appears in Business Wire and briefly discusses a collaboration between Customers Bank, a $20 billion commercial banking entity based in Pennsylvania, and Tassat, a 2017 startup based in New York and specializing in blockchain-based solutions for digital payments. In this case, Customers Bank will utilize the TassatPay platform. Based on a quick review of the website, TassatPay works by tokenizing U.S. dollar deposits into a digital wallet using a private, permission-based blockchain, which enables always-on instant payment capabilities without transaction size limits. The currency is called CBIT and is targeted towards B2B and capital market use cases.
‘“By using the TassatPay platform, we have removed payment risk, clearing, settlement and confirmation delays for clients,” said Sam Sidhu, President & CEO of Customers Bank. “While not every commercial client will adopt this service immediately, we believe this is the future of banking and puts Customers Bank at the forefront of the modern financial services industry.”…Customers Bank believes it will attract clients and significant deposits with the launch of the TassatPay platform, explained Sidhu.’
Along with the tokenized assets comes the ability to conduct cross-border transactions in relative real-time, which is one of the appeals of blockchain networks. That is where the JPM Coin and other stablecoin uses have been growing during 2020-21. One of the main themes going into 2022 is greater liquidity in both moving funds to where they need to be, but also visibility into the assets for greater confidence in forecasting cash positions.
‘TassatPay enables the bank’s clients to make real-time digital payments and works by tokenizing their U.S. dollar deposits. It also provides the infrastructure for executing smart contracts, processing transactions in multiple digital currencies and enhanced data capabilities….“We’re delighted that Customers Bank has given its clients access to the TassatPay platform,” said Ron Totaro, CEO of Tassat. “TassatPay gives them secure and reliable real-time settlement for any B2B transaction, around the clock, 365 days a year, with no size limitations, all on blockchain rails.”’
Overview by Steve Murphy, Director, Commercial and Enterprise Payments Advisory Service at Mercator Advisory Group
