Visa Unveils Tokenization Platform to Help Banks Explore Blockchain-Based Assets

Visa, a global leader in payment solutions, has taken another major step into the cryptocurrency space by launching a platform designed for banks to test tokenized assets and smart contracts.

Visa’s Vision for Tokenized Assets

The new platform launched by Visa enables banks to issue fiat-backed tokens in a regulated manner and explore the potential of blockchain technology in capital markets.

Cuy Sheffield, head of cryptocurrency at Visa, outlined the company’s goals, saying:

“We believe this creates a significant opportunity for banks to issue their own fiat-backed tokens on blockchains, do so in a regulated manner, and enable their customers to access and participate in these on-chain capital markets.”

Sheffield noted that Visa’s prior experience in asset tokenization positions the company to play a crucial role in this space. Notably, Visa has already participated in the pilot of Hong Kong’s central bank digital currency (CBDC) program, the Digital Hong Kong Dollar, alongside HSBC and Hang Seng Bank.

Banks testing the waters

Visa’s new platform has already attracted interest from financial institutions. Spain’s Banco Bilbao Vizcaya Argentaria (BBVA) is among the platform’s early adopters, using the digital asset sandbox to explore the potential of tokenized assets. Visa’s support is aimed at helping global banks navigate the complexities of the evolving financial landscape.