Visa Creates Platform to Aid Banks in Issuing Fiat-Backed Tokens
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Visa has launched a new platform to support financial institutions in issuing fiat-backed tokens, positioning itself at the forefront of blockchain integration in banking.
Visa’s crypto division, led by Cuy Sheffield, is guiding banks to adopt this new infrastructure. Realizing that banks can modernize their financial systems if offered fiat-backed tokens and engage in on-chain capital markets.
Visa’s platform has then set forth to enable the transition from traditional financial infrastructure to blockchain-powered digital systems.
Visa has been closely watching the evolution of tokenization, particularly as central banks and commercial financial institutions seek to modernize payment and settlement systems.
According to Sheffield, Visa’s new Tokenized Asset Platform (VTAP) will allow banks to explore these technologies in a regulated environment.
Spain’s Banco Bilbao Vizcaya Argentaria (BBVA), one of the participating banks, is already testing, with plans to launch a pilot on the Ethereum blockchain in 2025.
Similarly, in Hong Kong where Visa has been exploring the use of tokenized deposits for cross-border settlement of tokenized securities
Excited for Visa to partner with @ANZ_AU for Phase 2 of the Hong Kong Monetary Authority e-HKD pilot to explore the use of tokenized deposits for cross border settlement of tokenized securities https://t.co/tsaMMDbnOh
While fintech companies like PayPal have been at the forefront of stablecoin innovation, Visa’s push signals that large financial institutions are now ready to experiment with
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