Visa to develop a platform for banks to check fiat-backed blockchain tokens
Visa has introduced the launch of the Visa Tokenized Asset Platform, aiming to assist banks and monetary establishments discover the usage of tokenized property on blockchains, in accordance with Blockworks.
Tokenization is a course of that converts real-world property, equivalent to cash, into digital tokens that can be utilized on blockchain networks.
This know-how might enable banks to subject fiat-backed tokens, representing conventional cash, on blockchain techniques, enabling them to have interaction in digital monetary markets.
Visa on the Ethereum blockchain
Visa’s VTAP will enable banks to check and experiment with how these tokens can be utilized, providing a method to make transactions sooner and extra environment friendly.
The corporate plans to conduct its first pilot on the Ethereum (ETH) blockchain in 2025, working with a choose group of consumers, per Blockworks.
Ethereum is likely one of the hottest blockchain networks and helps good contracts—self-executing applications that deal with transactions when sure circumstances are met.
This transfer aligns with Visa’s previous work within the digital foreign money area, because it has beforehand collaborated with HSBC and Dangle Seng Financial institution on comparable tasks in Hong Kong. The pilot highlighted enhanced privateness and safety in transactions and showcased potential tokenized property and programmable finance functions.
Visa has been energetic within the token financial system and stablecoin area, earlier in September Ether.fi launched a Visa-enabled bank card and pockets app, permitting customers to entry fiat credit score utilizing crypto as collateral.