Tassat-Enabled Bank-Issued Stablecoins Are Backed One-to-One by U.S. Dollars and Qualify as FDIC-Insured Deposits
Ron Totaro, CEO of Tassat Group Inc., whose TassatPay™ blockchain-based B2B payment platform enables bank-issued stablecoins, offered comments on the recommendations on stablecoins by the President’s Working Group on Financial Markets and federal financial regulators:
- “We applaud the recommendations of the President’s Working Group and regulators. Their recommendations are consistent with our long-held belief that bank-issued stablecoins which operate within the existing U.S. regulatory infrastructure offer the best means of delivering the efficiency and effectiveness of blockchain-based solutions to U.S. banks and their customers.
- “We agree that stablecoins should be issued only by banks that are state and federally chartered, covered by FDIC deposit insurance and subject to existing and evolving regulations.
- “Bank-issued stablecoins can further de-risk the U.S. financial system because they are backed 1:1 by U.S. dollars in FDIC-insured demand deposit accounts.
- “It is critical to ensure that appropriate risk-management standards are met, while creating, promoting and adopting standards for interoperability with all necessary parties. This should be done within a permission-based network that reduces operating and settlement risks.
- “Our goal is a safe, secure and efficient digital payments system while promoting innovation that can benefit all Americans. We look forward to engaging in a continuing dialogue with the banking community, regulators and other stakeholders to support faster, efficient and more inclusive payment options.”
Attribution: Ron Totaro, Chief Executive Officer, Tassat Group Inc.
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