Breaking News

web3bzz

Allow notifications🔔 to receive the latest news and updates.

Visa Launches Tokenization Platform on Ethereum for Banks

Visa’s new platform enables banks to issue fiat-backed tokens on Ethereum, promising improved efficiency and new opportunities in the digital asset space.

1 min 15 secSeptember 25, 2024

Highlights:

Pilot programs underway with BBVA and HSBC.

Aims to enhance liquidity and streamline banking processes.

Visa Launches Tokenization Platform on Ethereum for Banks

Visa has officially launched the Visa Tokenized Asset Platform (VTAP), a groundbreaking initiative designed to assist banks in issuing and testing fiat-backed tokens on the blockchain. 

Currently, the platform is being piloted by several banks, including Spain's BBVA, which plans to initiate a pilot on the Ethereum mainnet in 2025 after successful tests in a sandbox environment this year.

 

 

Cuy Sheffield, Visa’s head of digital assets, highlighted the importance of regulatory clarity and management understanding within banks to fully leverage this innovative technology. 

 

He noted that while working with banks can be a slow process, it is essential for ensuring that both bank management and regulators grasp the intricacies of such platforms. Sheffield emphasized that as liquidity increases, new opportunities will emerge for banks to engage in on-chain capital markets.

 

 

The Visa Tokenized Asset Platform addresses various use cases, including real-time money transfers and cross-border transactions, which are currently restricted by existing financial infrastructure. 

 

With ongoing developments in central bank digital currencies (CBDCs), Visa's initiative reflects a growing interest among traditional financial entities in embracing blockchain technology. As VTAP continues to evolve, it could significantly reshape how banks operate in the digital asset landscape.

Subscribe To

Web3Buzz

Connecting you to the world of Web3

Related News

People also like to read

Latest News