Tassat, a company that helps large financial institutions to tap into the digital asset industry, has said that it has been receiving a record number of inquiries about its stable coin offering.
Its platform, which is called TassatPay, can be used by banks and other financial institutions to issue their stablecoins which would be backed by the cash held by the respective banks, and this can then be issued to the customers and moved around at will as well. This is in response to the increasing competition among the smaller and larger banks for a share of the same pie which places the smaller and mid-tier banks at a large disadvantage to the larger banks as the larger ones tend to walk away with all the sales leaving only the small and risky customer to the smaller banks. Now they have been forced to bring in a lot of innovation which would also help them to provide better services at a lower fee for its customers.
By issuing stablecoins on their own, they would be able to control the transactions made using such tokens and since they are backed up by the cash that is held by the bank, the customers would also be able to use it for payments and transfers knowing fully well that it is as good as normal money. Tassat goes one step further and helps the banks further by ensuring inter-operability between the stablecoins issued to the different banks. By ensuring that this happens, it will help for the stablecoins from one bank to be transferred to another bank and then it becomes easier for the banks and their customers to work with different entities.
But amidst all this is the question of whether this is in line with regulations and how the regulators view this new product. It does have a chance to chip away from the traditional financial ecosystem and it could also remove the visibility that the regulators generally prefer to have on all transactions and in such a situation, it remains to be seen how the regulators view it as this is the major challenge that is being faced by many crypto businesses that are looking to delve into crypto and solving many of the problems that exist with the traditional financial system.
