Tassat provides a private blockchain banking solution that enables clients of the same bank to pay each other instantly using tokenized deposits. Like JP Morgan’s JPM Coin (renamed to Kinexys Digital Payments), it automates transactions using smart contracts. So far Tassat’s solution has been deployed by half a dozen banks and used to process more than $2 trillion in transactions. Now Tassat has partnered with Veuu, a startup that is using AI to tackle healthcare insurance claims processing and payments.
Veuu’s main proposition is it processes health provider insurance claims quickly, usually paying out claims the same day. It uses AI to code health provider claims and assess risks that the claim might be denied. We assume it’s not the insurer (payer) that pays instantly, but a bank that’s willing to provide working capital based on the strong likelihood of the claim getting paid.
One of Veuu’s clients and backers is Huntington bank which invested $4.8 million last year and contracted to use the startup’s solution for five years. Huntington has a 146 person strong healthcare banking sales team. While we initially guessed that the Tassat integration would be with Huntington, the company subsequently confirmed that Tassat is not tokenizing cash for this solution. It is purely focused on the claims aspect.
“Leveraging Tassat’s Smart Contract capabilities, this is a data-on-blockchain solution to provide end-to-end traceability and immutability to healthcare claims and auditing processes,” a spokesperson wrote by email.
“The ability to create a Smart Contract for a healthcare claim and remittance introduces automation, transparency, and auditability while removing fraud from the process of healthcare payments. Storing this protected data on a blockchain is the optimal use for this technology,” said Terence Mills, Founder and CEO of Veuu. “Marrying this solution with a healthcare use case which allows providers to get paid instantly while also reducing cost for payers, solves one of the biggest problems in healthcare.”
Other Tassat solutions
Healthcare is just one of the applications that Tassat targets. Some of its banking clients provide 24/7 payment solutions for digital assets clients. Signature bank’s Signet used Tassat, as does the Customers Bank Instant Token (CBIT) system. Before its demise, Signature said that logistics companies accounted for more transactions than digital asset firms, although the latter had higher dollar values.
Meanwhile, in May Tassat collaborated with another startup, Glasstower Digital. Instead of using bank accounts, Glasstower plans to use tokenized money market funds for cross border payments by targeting corporate treasurers directly.
Tassat also developed a Digital Interbank Network (DIN). Tassat’s core solution works within a single bank, whereas DIN can support payments between banks. However, regulators have been cautious about these kinds of DLT payment solutions, not just DIN. So it’s not clear whether regulators have approved any banks to use DIN.
The startup is also a contributor to the SIFMA led Regulated Settlement Network, a tokenized deposit trial involving Citi, J.P. Morgan, Mastercard, Swift, TD Bank N.A., U.S. Bank, USDF, Wells Fargo, Visa, and Zions Bancorp.
Tassat and the Regulated Settlement Network are amongst over 70 initiatives in a new Ledger Insights Research report on tokenized deposits, bank stablecoins and DLT payments.
Update: Clarified that Tassat is not tokenizing cash for this solution. Added spokesperson quote.
