Before its collapse in mid-March, New York-based Signature earned a reputation as a crypto-friendly bank, largely thanks to its real-time registration platform Signet. With Signet, companies can process transactions outside of business hours, making it a useful tool for major crypto operations such as minting and trading stablecoins.
Many in the crypto industry lamented the departure of Signet—the FDIC reportedly sought a separate buyer outside of its successful purchase of Signature—which would mark the end of 24/7 crypto banking to a new end.
While Signet has become a key player in discussions about “Operation Chokepoint 2.0,” the popular theory is that US regulators are trying to destroy the crypto industry, much less the company that developed it. in the platform for Signature: the fintech firm Tassat.
Signet is a white label of TassatPay, a personal solution based on blockchain that is currently working in five other banks, including Cogent Bank, Customers Bank, and Western Alliance. Despite Signet’s demand among crypto companies, Tassat CEO Kevin Greene said Victory no customer has shown interest in using TassatPay to make crypto payments, nor have any new banks approached Tassat about developing a new version of Signet.
Greene said that Tassat has a range of use cases for TassatPay, from payment processing to private mobile phones, but does not include cryptocurrency transactions. “We love it – we know that’s where the appeal is,” he said victory, “But it really bothers us.”
While Bitcoin’s creator Satoshi Nakamoto pioneered blockchains with the benefit of decentralization, Tassat has repurposed the technology to be controlled through a consensus, proof-of-authority model. -a system that the company says is safer and more efficient for customers. With TassatPay, banks can take the best of blockchains—namely, the ability to make payments at any time without human interaction—but keep it private.
Although Signature is Tassat’s highest-grossing client, thanks to Signet, Greene says the cryptocurrency is still far from the pace of technology adoption, with clients using it for shipping and logistics, hospital reimbursements, and business development.
According to Tassat data, the company has achieved over $ 500 billion in real-time payments by 2022 among its different customers – a figure that exceeds $ 1 trillion in total. In October, Tassat launched a new product, the Digital Interbank Network, which allowed banks using TassatPay to settle payments between each other, eliminating over $800 million in work in his first three days of work. The signature is not included in the website.
Greene said that banks other than Signature have already inquired about using TassatPay for crypto, but no one has approached Tassat so far, even after Signature’s collapse. , despite the immediate lack of 24/7 banking options for crypto businesses, which relied on technology through Signet and SEN, Tassat’s non-payment processor for Silvergate, which collapsed in March.
“It didn’t end well for Signature Bank, so some people are starting to get a little cautious,” Greene said.
While the Federal Reserve is developing its instant payment service called FedNow, announced to launch in July, Tassat is the leader. Because of the problem for small and medium-sized banks, Greene said that their focus is on introducing technology that will enable them to compete with large banks.
“That’s what saves them,” he said Victory. “Without it, they’re going to fight.”