Visa Unveils Platform to Revolutionize Tokenized Banking
Visa has introduced the Visa Tokenized Asset Platform (VTAP), aiming to help financial institutions issue and experiment with fiat-backed tokens.
This initiative is designed to enable banks to leverage blockchain technology for tokenizing various real-world assets, including real estate and debt instruments.
In a recent development, Spanish bank BBVA has begun utilizing the VTAP sandbox as part of its strategy to enhance banking operations through blockchain. The bank plans to pilot token issuance and management on the Ethereum blockchain by 2025, focusing on a secure and regulated environment.
The collaboration between Visa and BBVA highlights how decentralized technologies can streamline traditional banking processes by allowing tokenized bank deposits and assets. This effort aims to establish a standardized framework for interactions among financial entities, facilitating seamless cash flows and asset trading.
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Additionally, the platform is set to grant financial institutions greater access to on-chain capital markets, potentially improving liquidity and investment opportunities. Visa’s Head of Crypto, Cuy Sheffield, emphasized the platform’s potential to diversify trading options for tokenized assets and noted that central banks are increasingly interested in tokenization’s impact on finance.
In parallel, Visa has partnered with Singapore’s dtcpay to expand its crypto payments network, simplifying cross-border transactions for users while enhancing security.