Tassat Group will provide access to FedNow through its client-facing application programming interface (API).
When the Federal Reserve launches the FedNow real-time payments rail, Tassat’s private blockchain-based B2B solutions will serve as on-ramps for commercial banks that want to participate in the Fed’s platform, Tassat said in a Wednesday (March 22) press release.
“Everyday consumers are able to move money at any time of the day and at any point in the week, yet businesses are limited to 9 a.m. to 5 p.m., Monday through Friday. That needs to change, and we are excited for the arrival of FedNow,” Tassat Group Chairman and CEO Kevin R. Greene said in the release.
The long-awaited payments service will debut in July, with the Fed beginning to certify participants in the first week of April and making sure they are prepared for the launch, the Federal Reserve said March 15.
“With the launch drawing near, we urge financial institutions and their industry partners to move full steam ahead with preparations to join the FedNow Service,” Ken Montgomery, the executive in charge of the program, said in a press release.
FedNow will bring real-time payments to the financial sector around the clock, and Tassat’s TassatPay and Digital Interbank Network will serve as an entry for commercial banks, according to the press release.
Tassat has worked with its bank partners to develop logistics, mortgage warehousing, commercial construction, private equity capital calls, broader working capital applications and other use cases for banks’ corporate clients that are enabled by FedNow, the release said.
“At Tassat, our mission is to empower banks to serve their clients with increased speed, security and efficiency, and FedNow will be a great complement to our offerings,” Greene said in the release.
“Leveraging this technology allows Byline to expedite how quickly payments are sent and received for customers using this platform,” Byline Bank President and CEO Alberto J. Paracchini said in September 2022.
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