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HomeCrypto NewsMarketVisa Launches Tokenized Asset Platform for Banks  

Visa Launches Tokenized Asset Platform for Banks  

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Leading payment giant Visa has launched a new platform to assist financial institutions in issuing and exploring the use cases of fiat-backed tokens. 

Dubbed Visa Tokenized Asset Platform (VTAP), the sandbox is part of Visa’s goal to establish a global standard focused on facilitating interactions between financial institutions and enhancing blockchain integration for real-world assets. 

Spanish Bank Adopts Visa VTAP to Issue Bank Tokens  

Notably, Spain’s Banco Bilbao Vizcaya Argentaria (BBVA) has already utilized the platform this year. The Spanish bank leveraged the infrastructure in a pilot focused on issuing, transferring, and redeeming bank tokens on a blockchain. 

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According to reports, BBVA aims to roll out an initial pilot with select customers on the Ethereum blockchain by 2025. Famous crypto commentator Abdullah Nassif shared the development today in an X post

Visa Crypto Head Highlights Importance of New Tokenized Platform 

Speaking in a statement, Visa’s Head of Crypto, Cuy Sheffield, emphasized the importance of bringing more forms of cash into its system to trade tokenized assets, ranging from debt securities to real estate. 

Additionally, Sheffield said the newly established platform allows banks to issue regulated fiat-backed tokens, providing their customers with an avenue to engage with on-chain capital markets. 

Central Banks Explore Tokenization 

Tokenization is gradually gaining steam, with top financial entities exploring the potential of tokenizing financial assets on the blockchain. 

According to Sheffield, the payment giant has closely observed how different central banks have explored the potential of tokenization and its impact in transforming the global financial scene. 

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Visa has also participated in some projects, like the Hong Kong Monetary Authority’s Digital Hong Kong Dollar program. During the program, Visa collaborated with Hang Seng Bank and HSBC on a pilot last year to test simulated interbank B2B payments. 

In the same year, the Central Bank of Brazil chose Visa and other financial institutions to participate in the pilot phase of its CBDC project, dubbed Digital Real

Notably, Sheffield said Visa’s participation in these projects attracted the interest of more commercial banks, with some of its existing partners asking about fiat-backed tokens and tokenized deposits. 

DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.

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Lele Jima
Lele Jima
Lele Jima is a cryptocurrency enthusiast and journalist who is focused on educating people about how the nascent asset class is transforming the world. Aside from cryptocurrency-related activities, Jima is a lover of sports and music.

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