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? Visa to help banks test tokenized assets, smart contracts

Author: Content Editor
Visa has created a platform to help financial institutions issue fiat-backed tokens and test their use cases. The move is part of Visa's effort to create global standards that facilitate interactions between entities. The company sees a significant opportunity for banks to issue their own tokens on blockchains, allowing customers to access and participate in on-chain capital markets. Visa has already engaged in pilots and partnerships with banks and central banks in Hong Kong and Brazil. Banco Bilbao Vizcaya Argentaria (BBVA) has been testing the Visa Tokenized Asset Platform (VTAP) sandbox and plans to launch a pilot on the Ethereum blockchain in 2025. Visa executives believe that the next phase will involve banks experimenting and creating their own products, particularly in the areas of real-time money movement and interacting with tokenized real-world assets. However, fragmentation and lack of uniformity in tokenization and smart contracts present challenges, and Visa aims to help create standards for interoperability among financial institutions.

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