B2B real-time payments and financial services solutions provider Tassat Group has launched The Digital Interbank Network, which allows U.S. regulated entities to complete instant, bank-to-bank transactions 24/7, 365.

The real-time payment network, which is based on permissioned blockchain, allows banks to complete interbank transactions “around the clock,” Kevin R. Greene, Tassat’s chairman and chief executive, told Bank Automation News. The technology is built into a bank’s core banking system and was first launched with banks that had already integrated Tassat’s real-time payment platform TassatPay.

“Everything we do is integrated into the core banking system,” Greene said. “We’ve gone through all of the paces to make sure that what we are doing is fully compliant with existing regulations, is safe and secure [and] that all of the operating protocols have been put together.”

The debut launch of the technology, which took place during an 8-hour period, saw more than 400 transactions at an average of $1.25 million per transaction, according to a Tassat release. The transactions exceeded $500 million, above Tassat’s initial goal for launch day. The inaugural transactions were completed by Cogent Bank, Customers Bank and Western Alliance Bank, all of which use FIS as their core processor, according to FI Navigator.

“We are pleased to support the development of a platform leveraging innovative blockchain technology, with the potential to expand our suite of services and provide our customers with the speed and convenience of 24/7/365 payments and more,” Tim Boothe, chief operating officer at Western Alliance Bank, said in the release.

Around the clock transactions

The Digital Interbank Network is reserved for U.S. regulated entities, Greene said, noting that corporate clients have longed for the ability to complete real-time transactions outside of normal of banking hours. In fact, on Tassat’s current platform, about half of the transactions happen outside of banking hours. “Everything we do in life these days operates more than 40 hours per week … except making a payment within a bank,” he noted.

The commercial launch of the network followed a 9-month working period with feedback and guidance from 50 Special Charter Member Banks including Byline Bank, California Bank of Commerce, Emprise Bank and more, Greene said. Initially, banks that participated in the development of the interbank capabilities will be among the first to utilize the technology, he said, adding, “In the long run, it’ll be an open network.”

Looking ahead, “As long as [banks] meet certain criteria for safety and soundness that are acceptable to the other banks, they can join the network,” Greene said.