Tassat, a fintech company focused on banking, announced the successful testing of its new Digital Interbank Network, a blockchain-based business-to-business payment network designed specifically to serve banks in the U.S.
The network’s formal launch earlier this week saw over 400 transactions conducted successfully over an eight-hour period, with an average of $1.25 million per transaction. Participants in the test included Cogent Bank, Customer Bank and Western Alliance Bank. Overall, the three processed more than $500 million worth of transactions using this new network, which exceeded the company’s expectations.
The new network is meant to be used to facilitate secure, instantaneous transactions around the clock between B2B customers of all sizes at member banks with no network-imposed limits on transaction sizes or volumes. Advising the company in this endeavor, beyond the three banks which participated in the test, are: Byline Bank, California Bank of Commerce, Emprise Bank, First Foundation Bank, Lineage Bank, OceanFirst Bank, SouthState Bank and Texas Capital Bank.
Tassat noted that this is the first blockchain-based real-time B2B payment network that operates entirely within the existing regulatory framework of the U.S. banking system. It includes only FDIC-insured banks transacting real-time payments and performing other bank services between commercial customers. Beyond instantaneous blockchain-based payments, customers of member banks will also have Fedwire integration and smart contracts.
With the test now successfully completed, Tassat intends to grow the number of banks on its network.
“It has been our long-held view that private permissioned blockchain technology operating entirely within the existing U.S. banking system can deliver all the power of blockchain without the need to discard or replace the trusted U.S. banking system that has served the U.S. and the world for more than 100 years. Tassat’s goal is to work with U.S. banks to modernize the U.S. banking system, not to displace or disintermediate banks. We don’t want to see traditional banks get left behind,” said Kevin Greene, Tassat’s Chairman and CEO, in a statement.