Blockchain operator Tassat announced on March 14 that it will provide access to the U.S. Federal Reserve’s FedNow payments system. FedNow, which will launch as a pilot program later this year, will provide real-time, 24/7 payments.
Tassat CEO Kevin Green told Cointelegraph that Tassat will serve as a business-to-business onramp to FedNow through a customer-facing application programming interface. Both the company's interbank and intrabank services will offer FedNow access.
The FedNow pilot is expected to begin with a small number of banks in June or July. The system will provide real-time gross settlement by funneling commercial bank funds from senders to recipients through Fed credit accounts. It is often seen as a non-blockchain alternative to central bank digital currencies and stablecoins. FedNow is initially only available for domestic transfers suitable for Greens. "We have a lot of work to do here in the United States," he said. He called America's financial infrastructure "outdated."
Tassat owns six banks, including the recently closed Signature Bank. Green said of the recent bank closures: "Recent events illustrate the existential crisis faced by small and medium-sized banks and regional banks, especially when they are squeezed out by the larger banks."
Greene said the adoption of blockchain in the banking system is progressing rapidly. “Sixteen months ago, most bank CEOs didn’t understand blockchain at all,” he said, “and today, it feels like […] they have to have some sort of blockchain strategy.” Greene added that in the past In the 12 months since, Tassat has doubled its workforce to 90 people. When the company was launched in 2017, Greene started as an investor and board member of the company before rising to the positions of CEO and chairman.
