Visa launches tokenized asset platform to help banks enter the blockchain industry
Global payments giant Visa has recently stepped up its use of cryptocurrency and blockchain technology, launching a new platform to help banks test the application of tokenized assets and smart contracts. The platform, called the Visa Tokenized Asset Platform (VTAP), aims to provide a testing environment for banks to assist them in issuing fiat-backed tokens and explore the application potential of these tokens on the blockchain. Visa hopes to use this platform to help traditional financial institutions further integrate into the world of digital assets and smart contracts.
Cuy Sheffield, head of cryptocurrency at Visa, said: “We believe this creates a huge opportunity for banks to issue their own fiat-backed tokens in a regulated manner on the blockchain and enable their customers to Participate in the capital market on the chain.”
This move by Visa not only reflects its active layout in the digital asset industry, but also reflects that tokenized assets will become an important trend in the future financial industry.
Source: Visa Visa’s Tokenization Solution
Assisting global banks in testing tokenized assets and smart contracts
Visa’s tokenized asset platform is now up and running and has attracted a number of international banks to participate in testing. Spanish bank Banco Bilbao Vizcaya Argentaria (BBVA), for example, has this year tested token issuance, transfer and redemption operations in Visa’s sandbox environment. The bank expects to launch an initial pilot project on the Ethereum blockchain to select clients in 2025.
Visa's tokenization platform targets a variety of application scenarios, including instant fund transfers between bank customers, interbank transfers in the wholesale central bank digital currency (CBDC) market, and the cross-border fund movement needs of multinational corporations. These application scenarios demonstrate the huge potential of tokenized assets and smart contracts to increase transaction efficiency, reduce costs, and improve capital flows.
Catherine Gu, head of tokenized assets and CBDC at Visa, said: “For multinational enterprises that want to move funds 24 hours a day, the current transaction track is very limited.”
She further pointed out that Visa’s platform will provide such businesses with more transaction options and promote interoperability among financial institutions, especially in terms of asset transfers between different jurisdictions.
Break the fragmentation of blockchain applications and promote global standardization
Visa's tokenized asset platform not only focuses on improving asset interoperability between banks, but also hopes to solve the current fragmentation problem of tokenization technology and smart contract applications. Visa is working hard to develop global standards to ensure that financial institutions can maintain system consistency and interoperability when entering the blockchain industry, which is critical for the widespread use of tokenized assets.
It is worth mentioning that Visa is not the only company actively deploying in this industry. Global payments infrastructure provider Swift also announced in September the launch of a platform designed to simplify the interoperability between central bank digital currencies (CBDC) and physical assets. Although Swift's platform is not aimed at tokenized assets, it is also committed to promoting the simultaneous settlement of global asset transactions through "delivery of consideration" (DvP) and "payment to payment" (PvP) models.
Overall, Visa is gradually introducing blockchain technology into the traditional financial system through its tokenized asset platform to provide new digital asset solutions for banks and multinational enterprises. As global demand for tokenized assets grows, Visa's innovative platform is expected to play a key role in driving the digital transformation of financial markets.