Customers Bank, a subsidiary of Customers Bancorp (NYSE: CUBI), announced the launch of its highly anticipated ‘Customers Bank Instant Token’ this past Wednesday. The new offering utilizes infrastructure created by TassatPay, the developer of a global blockchain platform, to tokenize commercial client deposits, enabling instantaneous B2B transactions which bypass the standard payments infrastructure, thereby removing payment risk, clearing, settlement, and confirmation delays. The infrastructure, put in place to facilitate the movement of ‘Customer Bank Instant Tokens’, also lays the foundation for the execution of smart contracts in the future.
Customers Bank is known for its high tech / high touch approach, and the introduction of blockchain to their product suite will serve to keep their firm on the vanguard of the digital payments ecosystem. Since the bottom of the “COVID crash”, Customers Bank has roared back, returning over 500% to shareholders and doubling its share price from pre-pandemic levels. This may not be the decentralized future that we hoped for, but Customers Bank’s new offering is a major step towards eliminating some of the bureaucracy that is rampant in the current payments system.