Visa has launched the Visa Tokenized Asset Platform (VTAP) on the Ethereum blockchain, allowing banks to create tokens collateralized by cryptocurrencies. The goal is to facilitate the tokenization of assets for financing bodies. The platform enables banks to issue fiat-backed tokens and manage digital tokens under regulatory guidelines, making transactions faster and more efficient. The market size of asset tokenization is projected to reach $16 trillion, and Visa's involvement may encourage more institutions to use tokens. However, there are challenges related to market fragmentation and regulatory compliance, as well as building user trust in digital tokens. Overall, the VTAP platform could help grow the tokenized asset market and modernize global financial systems.
- Content Editor ( blockchainreporter.net )
- 2024-09-30
Visa Introduces a New Platform to Accelerate Bank Adoption of Asset Tokenization