Visa Unveils Tokenization Platform to Assist Banks in Examining Assets Based on Blockchain - daily crypto news
Leading provider of payment solutions worldwide, Visa, has launched a platform that allows institutions to test tokenized assets and smart contracts, marking another significant move into the cryptocurrency area.
With the new platform that Visa has introduced, banks can investigate the possibilities of blockchain technology in capital markets and issue tokens backed by currency in a controlled manner.
Cuy Sheffield, Head of Crypto at Visa, described the goals of the organization, saying,
"We believe that gives banks a huge opportunity to issue their own fiat-backed tokens on blockchains, do it in a regulated manner, and give their customers access to and involvement in these on-chain capital markets."
Sheffield emphasized that Visa is in a unique position to be a major player in this market because of its past experience with asset tokenization. Notably, Visa, together with HSBC and Hang Seng Bank, has already taken part in the Digital Hong Kong Dollar pilot program of Hong Kong's central bank digital currency (CBDC).
Banks Trying Their Luck
Financial institutions are already showing interest in Visa's new platform. One of the first companies to use the platform was Banco Bilbao Vizcaya Argentaria (BBVA) in Spain. It used the digital asset sandbox to investigate the possibilities of tokenized assets. Visa's assistance is intended to help international banks manage the intricacies of the changing financial scene.
Visa has joined together with XP, one of the biggest brokers in Brazil, to take part in the Drex trial program. The pilot concentrated on tokenized assets' business-to-business (B2B) payment capabilities, especially in interbank transactions. The purpose of this program was to evaluate how tokenized assets might be used effectively and safely in property payments and settlement procedures for merchants and financial institutions.
Growth Prospects for Digital Finance
The platform offered by Visa is a component of a larger plan to incorporate digital assets into conventional banking. The company has improved the usability, security, and dependability of its cryptocurrency solutions by collaborating with more than 65 suppliers of digital wallets. Sheffield mentioned that banks would be testing their own tokenized goods as part of the upcoming development phase.
He continued,
"We believe that the banks will enter the market at the next stage, begin to experiment, and develop their own products. When you have greater cash, I believe a lot more chances will present themselves."
In the field of decentralized finance (DeFi), Visa has taken the initiative to establish its position. The organization has expressed its belief that blockchain technology has the ability to revolutionize a number of areas related to payments, commerce, and financial markets.
Disclaimer: The only goal of this article is informational. It is not meant to serve as financial, investing, tax, legal, or other advice.