Asset tokenization is the process of representing an existing asset or directly issuing a new asset on a blockchain.
What are some of the benefits of tokenizing an asset?
There are a number of efficiencies and benefits that can be gained from tokenizing an asset, a few are:
More efficient asset transfer
Reduced transaction processing costs
More efficient reconciliation, increased control and transparency
Automation of processes reducing operational risk and cost
Reduced settlement timelines
Immutability of records and transaction history
What can Tassat’s technology tokenize?
Tassat's core technology is asset and sector agnostic. The tokenization process is run by smart contracts and can represent:
Trade finance agreements and letters of credit
How is an Asset tokenized?
Existing assets are placed in a trust or custody and digital representations of them are issued and recorded on blockchains. New assets can be issued directly on blockchains.
What is a Bank Coin and what can it be used for?
Bank Coins offered by institutions using Tassat’s blockchain technology are digital coins used to make instantaneous corporate payments often on a 24x7x365 basis. Banks Coins are not a cryptocurrency. Banks Coins are backed by an underlying fiat currency held in designated bank accounts. One Bank Coin has a value equal to the unit of fiat currency underlying it (as designated by the bank).
Has the NYDFS evaluated Tassat’s blockchain technology that is currently being used to power banks creation of their own Bank Coin?
Tassat’s technology and our Bank Coins are being used in production today (they are not a prototype). Billions of dollars in corporate transaction value have been completed through Bank Coins. Tassat’s payment technology has been evaluated and approved by the NYDFS.
Note - Tassat is not a bank entity and as such is not directly regulated by the NYDFS. Our bank partners who conduct business within the state of New York are regulated by the NYDFS.
Are Banks Coins the same as cryptocurrency?
Bank Coins are not a form of cryptocurrency (e.g., Bitcoin, Ether, XRP, etc) – Bank Coins are created (“minted”) based on fiat currency held in deposit accounts. They are equally redeemable (“burned”) back to fiat currency held at the bank using Tassat’s real time payment platform technology.
Bank Coins are not offered on public blockchains – They are offered on a private permissioned blockchain which is managed by the bank (and/or in partnership with Tassat if desired).
Bank Coins are not primarily designed to act as an investment – They act as new payment rails for corporate payments and transfers.
Why do banks work with Tassat?
Banks are inclined to work with Tassat because:
We offer innovation in the payment space
We have proven expertise in blockchain enabled technology of this kind
Our business model does not conflict with banks but instead only helps them
We only succeed when our bank partners succeed
Our time to market is measured in months vs years
Why does Tassat work with banks as partners?
Tassat believes that any transformation or evolution in payments require the partnership and leadership of banks globally. They provide trust, balance sheets, controls/compliance and are regulated.
Who can use Bank Coins?
Our bank partners determine who can use Bank Coins. More broadly they are designed for the banks’ corporate clients who meet their KYC and AML requirements. As adoption continues to grow, Tassat will work with it’s bank partners to extend Bank Coins for payments to retail consumers, new market segments and partners.
What blockchain does Tassat’s Bank Coin run on and can it interact with other blockchains?
Tassat’s Bank Coins are issued on an Ethereum based blockchain. However, Tassat’s technology is blockchain agnostic and can be integrated with any other blockchain and smart contract suite.
How is Tassat different from other digital asset exchanges?
Tassat is an institutionally focused exchange and creator of the first margined XBT/USD Deliverable swap contract listed on our CFTC regulated SEF, with plans to support a spot digital asset marketplace through the same infrastructure.
Who can trade on your exchange?
Participation on the exchange is limited to Eligible Contract Participants.
What currencies do you trade?
Deliverable XBT/USD Contracts will be listed on a CFTC regulated Swaps Execution Facility.
Eligible contract participants will access the exchange via FIX API, a browser-based user interface or through approved third party vendors.
What can I trade on the exchange?
Initially listing XBT/USD deliverable swap contracts with plans to expand to other derivative types and pairs.
Are you regulated?
The derivatives will trade on a CFTC regulated SEF and the Spot market has applications pending for a NY Bitlicense and Money Transmitter Licenses, it has also registered with FinCEN as a Money Services Business
How do trades settle?
Deliverable contracts settle through a prime broker with bilateral coin delivery allowing clients to use any custodian or self-custody.
How are your index prices different from retail prices?
The Tassat reference rates are built entirely from OTC / Institutional market prices, and represent a significantly larger liquidity pool than retail indices. They are also, by design, far less manipulable than any other commercially available indices.
How are your prices created?
They are the 12:30pm to 4:30pm Eastern Time average of executable bid / offer quotations for a minimum size of 100 Bitcoin and 1000 Ethereum from 10+ of the world's leading OTC market makers.
Why do you only publish the price once a day?
While the Tassat Reference Rates are only published once per day and represent a 4:30pm Eastern Time price suitable for portfolio Mark to Market and fund NAV calculations, Tassat also calculates continuous live trailing 4-hour and point-in-time indices using the same OTC market maker methodology. These are also available for subscription.
What extra value do I get by subscribing to the index?
By subscribing to the Reference Rates, users receive them approximately 5 hours earlier than the general public, and receive a license to use the prices for MTM and NAV purposes for the entity or fund which licenses them. Users who wait for the free publication at 10:00pm are only licensed for personal use of the prices.
Why do OTC prices matter?
In stressed markets, OTC prices and retail exchange prices can diverge. Because the OTC market is the primary execution venue for institutional investors, an OTC reference price is more appropriate for valuation and price discovery purposes.
Can I get OTC midpoint prices in real time?
In addition to the 4:30pm ET Reference Rates, Tassat also publishes near real-time OTC indices for Bitcoin and Ethereum which are based on the average across 10+ major OTC market makers across a 30 second time window.
What type of transactions can be settled on the Tassat platform?
The platform can be configured to settle any digitized asset or natively digital asset such as Bitcoin or Ether. This can be across one chain or on an “any chain to any chain” basis depending on a client’s requirements.
How do you work with escrow agents?
The Tassat platform employs on chain escrow and a combination of smart contracts and applications to settle transactions.
What is your settlement process?
The Tassat platform employs a multi-signature Delivery versus Payment framework.
How does the platform protect against settlement risk?
The delivery versus payment framework ensures that payouts are never completed before both legs of a transaction have pledged and completed. If either side fails to complete their part of a transaction or pledge, the transaction can be suspended, rolled back or delayed.
Is there a guaranteed time to completion?
Each transaction settlement occurs at a predetermined time which can be customized to a client’s needs.