- Customers Bank is teaming up with Tassat.
- The bank is one of few to begin working with crypto-based companies.
- It will do a test run in September before opening the service to all in October.
Customers Bank is teaming up with the blockchain payments provider — Tassat. Together they will bring real-time tokenized dollar transfers along with accounts for crypto-based companies. This makes the bank one of the few FDIC-insured companies to work with crypto firms in the US.
Situated in West Reading, Pennsylvania, the bank will compete with Signature in New York and Silvergate in California. All these banks offer a similar service of letting clients transfer dollars instantly to one another. To add on, this blockchain-based platform will allow a 24/7 service.
So far, very few banks have readily accepted to work with crypto-based firms due to many reasons. However, banks have the chance to benefit from these businesses as they typically need a bank to transfer and store their clients’ fiat.
Customers Bank’s vice chair and chief operating officer — Sam Sidhu, says that customers are constantly looking for ways to be more involved and engaged with the crypto world. While some banks may offer their customers rewards or custody services, Customers Bank will focus on businesses that are directly or indirectly serving the customers instead.
To start with, Customers Bank is testing its blockchain payments platform with 10-15 of its clients. The technology will be provided by Tassat. This test run will begin in September and the service will eventually be available to the rest of the crypto ecosystem in October.
On this matter, Customers Bank’s head of digital assets — Cameron Somers, says
Once we have a fully functional ecosystem with a number of different types of institutions on that platform then the idea would be to continue to expand from there and then potentially build on some additional products and features within our offering.
Meanwhile, Tassat’s blockchain can facilitate payments only to those clients of the banks that use it. To specify, the on-chain fiat payments will be available for free. Finally, the bank is also planning to offer Tassat Pay for non-crypto clients. These will include the sectors of alternative energy, commercial real estate, accounting, insurance, hospitality, healthcare, and manufacturing.