Starting September, 10 to 15 clients will be able to test Customers’ blockchain payments platform provided by Tassat. After the pilot proves to be successful, Customers Bank will further open the service for the rest of the crypto ecosystem in October.
Pennsylvania-based Customers Bank is joining the list of companies willing to serve crypto firms. For doing that, Customers Bank has partnered with Tassat. The latter is a New York provider of digital payments solutions for banks to offer their commercial customers.
Cameron Somers, Customers Bank’s head of digital assets, said:
“We are well-positioned to be a great third banking option that can offer a strong offering to the digital asset space. The main focus is to build a low cost deposit franchise very similar to what Signature Bank and what Silvergate Bank has done.”
Starting September, 10 to 15 clients will be able to test Customers’ blockchain payments platform provided by Tassat. After the pilot proves to be successful, Customers Bank will further open the service for the rest of the crypto ecosystem in October. Prior to the full launch, the bank wants to have a fully functional ecosystem with different types of institutions on that platform.
Notably, with the new service, Customers Bank will make a competition with San Diego-based Silvergate. The latter is a Federal Reserve member bank and the leading provider of innovative financial infrastructure solutions and services for crypto industry. In addition, Customers Bank will compete with Signature Bank in New York. It offers crypto firms basic accounts as well as a blockchain-based platform for clients to instantly send each other dollars 24/7.
Cameron Somers stated:
“We are well-positioned to be a great third banking option that can offer a strong offering to the digital asset space. The main focus is to build a low-cost deposit franchise very similar to what Signature Bank and what Silvergate Bank has done.”
Currently, many banks are unwilling to offer suck services as a result of tricky anti-money-laundering (AML) as well as know-your-customer (KYC) requirements.
About Tassat
Tassat is a fintech company that provides blockchain-based technology solutions for digital payments and digital exchange markets. It has already delivered the first digital payments platform approved by the NYDFS. The platform has transacted significant volume to date and plans to launch a CFTC-regulated digital asset derivatives exchange for institutional investors. Notably, Tassat is also an NYDFS-approved, blockchain-based payments platform for Signature Bank.
The Tassat Pay Network tokenizes U.S. dollar deposits and moves them between digital wallets on Tassat’s platform. It is quite similar to JPMorgan Chase’s JPM coin that enables the megabank’s corporate customers to send each other money instantaneously using a private blockchain. As of August 2021, Tassat Pay has more than 700 companies in its client base. It has processed billions of dollars in transactions by this time.
For Tassat, the partnership with Customers Bank is the first outside Signature Bank’s Signet. In the future, the company will further expand its customer base.