Visa, a global payment leader, has advanced further into the cryptocurrency space with the launch of a platform aimed at helping banks test tokenized assets and smart contracts.
Visa’s Ambition for Tokenized Assets
The new platform allows banks to issue fiat-backed tokens in a regulated environment while exploring blockchain’s potential in capital markets. Cuy Sheffield, Visa’s Head of Crypto, emphasized the platform’s promise, stating, “This creates a huge opportunity for banks to issue fiat-backed tokens on blockchains in a regulated manner, enabling their customers to engage with on-chain capital markets.”
Sheffield also pointed to Visa’s strong foundation in asset tokenization, including its participation 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 Digital Waters
Visa’s platform has already sparked interest from financial institutions. Spain’s Banco Bilbao Vizcaya Argentaria (BBVA) is among the early adopters, using the platform’s digital asset sandbox to explore tokenized assets. Visa’s initiative is designed to support global banks in adapting to the rapidly evolving financial landscape.
In Brazil, Visa has collaborated with XP, a leading broker, to take part in the Drex pilot program. The program explores the business-to-business (B2B) payment capabilities of tokenized assets, particularly for interbank transactions. It aims to test the secure and efficient application of tokenized assets in property payments and settlements between financial institutions and merchants.
Broadening Horizons in Digital Finance
Visa’s new platform is a key part of its broader strategy to integrate digital assets into the traditional banking system. The company has already partnered with more than 65 crypto wallet providers, enhancing its crypto solutions’ accessibility, security, and reliability. Sheffield noted that the next step would involve banks experimenting with their own tokenized products.
Source: cryptodaily.co.uk
