Tassat Crypto Explained: How the Institutional Payments…

KEY TAKEAWAYS

1. Tassat Group provides blockchain payment infrastructure designed exclusively for regulated banks and financial institutions operating within established United States banking frameworks today.
2. TassatPay has processed more than $2.5 trillion in real-time digital transactions since its initial platform launch in the year 2019.
3. The Digital Interbank Network completed over $500 million in real-time payments among three participating banks using private permissioned blockchain architecture.
4. Lynq settlement network launched in July 2025 on Avalanche's public blockchain and migrated to its dedicated Avalanche L1 in April 2026. By April 2026, it connected more than 30 institutions.
5. The Digital Interbank Network is restricted to FDIC-insured banks, enabling around-the-clock settlement within the U.S. banking regulatory framework.

Institutional crypto payments demand infrastructure built for regulated banking environments. Tassat Group Inc. has emerged as a critical provider in this space. The New York-based fintech company builds blockchain payment systems exclusively for banks and financial institutions.Since launching TassatPay in 2019, the company has processed more than $2.5 trillion across Tassat-powered systems, including Signet, the digital payments network operated by Signature Bank before its collapse in March 2023, according to official disclosures. Its newest venture, the Lynq settlement network, targets institutional trading firms seeking real-time yield-bearing settlement solutions.This article examines how TassatPay, the Digital Interbank Network, and Lynq each serve distinct roles within regulated finance.

How TassatPay Powers Real-Time Bank Payments

TassatPay operates as a private permissioned blockchain payments platform. It tokenizes U.S. dollar deposits into digital payment instruments, and banks use these tokens for real-time business-to-business transactions.Western Alliance Bank, listed on the NYSE under the ticker WAL, adopted TassatPay for its commercial clients, the company confirmed. The bank manages roughly $99 billion in total assets as of March 31, 2026. Its partnership with Tassat enables round-the-clock digital dollar payments.Glendy Kam, Chief Product Officer of Tassat Group, has led the platform's expansion into multi-currency settlement capabilities. In 2023, TassatPay introduced multi-currency wallets beginning with G7 currencies, positioning the platform for cross-border institutional payment flows.Mike Manning, Head of Institutional Finance at Ava Labs, noted the broader significance of blockchain-based settlement platforms. "Lynq is a great example of how institutions can design settlement infrastructure on their own terms using Avalanche," Manning stated in the April 29, 2026 announcement of Lynq's dedicated Avalanche L1. His remarks underscore growing institutional demand for customizable payment rails.

The Digital Interbank Network and Its Banking Framework

Tassat launched the Digital Interbank Network in October 2022, which the company describes as the first blockchain-based real-time B2B payments network operating within the U.S. banking regulatory framework. The network restricts participation to FDIC-insured banks, supporting round-the-clock payments within the existing banking framework.The network completed over $500 million in real-time transactions among three participating banks, Cogent Bank, Customers Bank and Western Alliance Bank, according to Tassat's October 2022 announcement. Each transaction settles on private, permissioned blockchain infrastructure, allowing participating banks to process payments around the clock.This framework differs fundamentally from public blockchain payment alternatives. Private permissioned architecture limits access to vetted, regulated banking entities. The design addresses institutional settlement concerns about counterparty risk and regulatory exposure for banks.Tassat received a U.S. patent for its interest-bearing settlement technology. The patent covers methods for generating yield on tokenized deposits. This intellectual property underpins both TassatPay and the newer Lynq network.

Lynq Settlement Network Upgrades to Avalanche

Lynq represents a joint venture among Arca Labs, Tassat, and tZERO Group focused on real-time yield-bearing institutional settlement infrastructure. The network launched in July 2025, with its first transaction recorded on the Avalanche blockchain. It migrated to a dedicated Avalanche L1 in April 2026.Jerald David, CEO of Lynq, described the significance of the launch. "Almost two years worth of work culminates in today's launch of the next generation of institutional settlement infrastructure," David stated in the July 16, 2025 launch announcement.Lynq launched in July 2025 with 11 named partners and 13 onboarded clients. By April 2026, it connected more than 30 institutions, including B2C2, Crypto.com, FalconX, Fireblocks, Galaxy, and Wintermute.The dedicated Avalanche L1 became Lynq's settlement infrastructure following its migration in April 2026. Lynq's architecture combines real-time settlement with yield generation on deposits. This dual capability distinguishes it from conventional crypto settlement network alternatives.

What's Next?

Tassat Group continues expanding its regulated blockchain payment infrastructure footprint. TassatPay's multi-currency capabilities position it for broader cross-border adoption. The Digital Interbank Network may add more FDIC-insured banking participants.Lynq's growing partner roster suggests institutional demand for yield-bearing settlement. Following its April 2026 migration to a dedicated Avalanche L1 and expansion to more than 30 connected institutions, the network's adoption and transaction volumes will be key developments to watch through 2026 and into 2027.

FAQs

What is Tassat Group? Tassat Group is a New York fintech company building blockchain payment infrastructure for regulated banks and financial institutions. How does TassatPay work? TassatPay tokenizes U.S. dollar deposits on a private permissioned blockchain, enabling real-time business-to-business digital payments for banks. What is the Digital Interbank Network? The Digital Interbank Network is a blockchain B2B payments network restricted to FDIC-insured banks within the U.S. regulatory framework. What is the Lynq settlement network? Lynq is a real-time yield-bearing settlement network co-developed by Arca Labs, Tassat, and tZERO Group for institutional participants. Which banks use TassatPay? Western Alliance Bank adopted TassatPay for its commercial clients. Only FDIC-insured banks can join the Digital Interbank Network. What blockchain does Lynq use? Lynq launched on Avalanche's public blockchain in July 2025 and migrated to its dedicated Avalanche L1 in April 2026.How much has Tassat processed? Tassat reports more than $2.5 trillion in transactions across Tassat-powered systems, including Signet, according to its official company disclosures.

References

1. Tassat Group Official Website
2. Lynq Network Launch Announcement
3. The Block Coverage of Tassat
4. Avalanche Ecosystem Overview