Florida’s Cogent Bank has launched real-time B2B payments using the TassatPay private permissioned blockchain platform. The solution enables business clients to make real-time payments to other Cogent account holders 24/7.
The TassatPay solution has also been deployed by Western Alliance Bank, Signature Bank, Customers Bank and Axos Bank. To date, the offering has been used to process $450 billion in transactions and it supports smart contracts and Fedwire functionality.
When clients want to use the system, money for the payment is transferred to an omnibus account, where it is converted to tokens. The payment involves moving those tokens to another client, with the tokens then burned and the money transferred from the omnibus account to the recipient’s bank account.
Given the limitation of only transacting with other bank clients, last year TassatPay announced plans for the Digital Interbank Network to interconnect each of the banks’ private blockchains for interbank payments.
The Network uses Tassat technology but is governed by the participant banks with a 40 bank working group and 200 banks expressing interest.
Meanwhile, others exploring interbank payments include the USDF Consortium from community bank organization JAM FINTOP and Figure Technologies, which has attracted eight banks. JP Morgan has its JPM Coin for use between bank clients. And in Singapore, JP Morgan is part of a joint venture Partior for interbank payments.