The FedNow Payment System: A Game Changer for Transactions
Tassat, a blockchain operator, recently announced its exciting role in providing access to the Federal Reserve’s FedNow payment system, set to pilot later this year. Imagine a world where your transactions go through faster than the time it takes to enjoy a coffee break—welcome to FedNow. This initiative aims to revolutionize the way we conduct payments, offering real-time, 24/7 service that most can only dream of achieving.
Tassat’s Role: Bringing Banks and FedNow Together
CEO Kevin Greene revealed that Tassat would act as the business-to-business on-ramp to FedNow through an innovative application programming interface (API). This means Tassat will directly connect banks and other financial entities to the infrastructure that powers FedNow, allowing their clients to experience the benefits firsthand. With Tassat’s interbank and intrabank services, accessing FedNow is going to be as easy as pie—or at least like ordering it through a food delivery app.
The Timeline: Wait, How Soon Can We Start?
The pilot for FedNow is anticipated to kick off in June or July, involving a select number of banks. Will these banks be rolling out the welcome mat with a glowing ‘Open 24/7’ sign? Not quite—initially, the system will focus solely on domestic transfers. Greene is enthusiastic about this concentrated effort: “We have a lot of work to do here in America,” he commented, painting a somewhat unflattering portrait of our current financial system as, well, “antiquated.”
Facing Challenges: The New Age of Banking
While recent bank failures have sent shockwaves through the financial community, Greene addresses this by highlighting the existential crisis faced by smaller banks. “Recent events have illuminated the existential crisis that small, mid-sized, and regional banks face, particularly being squeezed out by the mega banks,” he opined, proving that sometimes, crises can lead to innovation. He emphasizes the ever-growing blockchain adoption among banks, noting, “Sixteen months ago, most bank CEOs didn’t know much about blockchain at all,” demonstrating a notable pivot toward technology in finance.
Looking Ahead: Tassat’s Expansion Plans
Amidst all this progress, Tassat isn’t slowing down. With its pipeline boasting six banks, including the notorious Signature Bank, Tassat is on a roll. They’ve even doubled their workforce in the past year—because, apparently, more hands make lighter work! Greene’s journey is also an intriguing one. From starting as an investor and board member in 2017, he moved up to become CEO and chairman, almost like a real-life financial superhero ready to tackle the industry’s challenges.
