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Customer Bank join hands with Tassat

source-logo  thecoinrepublic.com 24 August 2021 16:54, UTC

Customer Bank has partnered with a blockchain payment provider Tassat to offer crypto services to its clients. Tassat will offer real-time tokenized dollar transfers and accounts for crypto firms. 

Customer Bank from the U.S. has partnered with a blockchain payments provider Tassat to offer real-time tokenized dollar transfers. The bank, based in West Reading, Pennsylvania, is joining the small list of FDIC- insured institutions in the U.S. that are willing to work with cryptocurrency businesses. 

The immediate competitors of the bank are Silvergate in California and Signature in New York which offer crypto firms basic accounts as well as blockchain-based platforms for clients to instantly send each other dollars 24/7.

Cameron Somers, Head of Digital Assets, Customer Bank said that the bank is well-positioned to be a third banking option to give a strong offering to the digital asset space. The main idea is to build up a low-cost deposit franchise which is the same as what Signature Bank and what Silvergate Bank has done. 

US banks open working for Blockchain 

Many U.S. banks are now seeking to work with the Blockchain firms in the country. The banks are showing interest because of dealing in crypto, anti-money laundering (AML) and Know-your-customer (KYC) requirements. The exchanges and other firms that serve the digital asset market process high volumes of payments and typically seek multiple banks to store and move their users’ fiat. 

Sam Sidhu, Vice-Chair and Chief Operating Officer, Customers Bank said that the customers are continuously trying to find ways to be involved, engaged and interested in the cryptocurrency world. Some banks offer rewards or other services to consumers. The bank is focused towards businesses that may directly or indirectly service those customers. 

Bank’s reliability over Tassat

Before the bank opens its services for the rest of the crypto ecosystem in October, 10-15 clients will start testing customers’ blockchain payments platform provided by the technology provider called Tassat in September. 

Tassat will pay real-time blockchain payments by tokenizing dollar deposits and move them between digital wallets on the Tassat platform. On a similar line is JP Morgan Chase’s JPM Coin, which helps megabank’s corporate customers to send each other money instantaneously using a private blockchain. 

In the same way, Tassat Blockchain can only facilitate transactions of the bank’s clients. Irrespective of the fact that the platform is connected to traditional payments systems like the automated clearing house (ACH) and Fedwire. The fiat payment will be free as compared to the fees for sending payments through ACH. Customers Bank informed that it will pay little or no interest on these firm’s deposits. So they will be the raw material for the Customers Bank to give loans. 

Customers Bank is also looking for a provision where Tassat can pay non-crypto clients in accounting, alternative energy, commercial real estate, healthcare, hospitality, insurance and manufacturing. 

Customers Bank is less than half the size of JP Morgan. It has $19.6 billion in assets and 0.52%the size of JP Morgan and regional institutions like this are the sweet spot for Tassat. The partnership is a first of its kind for Tassat outside powering Signature Bank’s Signet. The banks will deposit between $5 billion to $200 billion as part of the partnership with Tassat. 

thecoinrepublic.com