Visa to Launch Tokenized Asset Platform in 2025

Visa is preparing to introduce its Tokenized Asset Platform (VTAP) in 2025, allowing banks to issue fiat-backed tokens on the Ethereum blockchain. This pilot project aims to improve transaction speed, security, and privacy by leveraging Ethereum's smart contract technology. The move represents Visa’s ongoing efforts to integrate blockchain into traditional financial systems, enhancing the connection between digital assets and fiat currencies.

By tokenizing fiat currency, banks can streamline cross-border payments, reduce costs, and increase security. Visa’s history with digital assets, including collaborations in Hong Kong, shows its commitment to exploring blockchain’s potential in traditional banking environments. The VTAP platform will focus on regulatory compliance while providing financial institutions with a secure way to leverage blockchain technology​