Visa to Pilot Tokenized Asset Platform on Ethereum Blockchain in 2025
Visa will launch a pilot project in 2025 to help banks tokenize fiat currency on Ethereum, making transactions faster and more secure.
Key points:
- Visa launches new platform: The Visa Tokenized Asset Platform (VTAP) allows banks to experiment with blockchain-based tokens.
- Pilot starts in 2025: The initial rollout will happen on the Ethereum blockchain.
- Fiat-backed tokens: Banks can issue tokens backed by traditional currencies, connecting digital and fiat markets.
- Improved privacy and security: The platform aims to enhance transaction privacy for financial institutions.
- Visa’s blockchain history: Visa has a history of working with digital assets, including projects in Hong Kong.
Visa’s Big Step into Tokenization:
Visa plans to launch its Tokenized Asset Platform (VTAP) for banks in 2025. This platform will let banks issue fiat-backed tokens for use on the Ethereum blockchain, aiming to enhance transaction speed and security.
Tokenization, the process of converting real assets into digital tokens, is gaining traction among financial institutions.
Visa’s platform seeks to streamline banking transactions and boost security by using Ethereum’s smart contracts.
Read more: Ether.Fi to Launch Visa ‘Cash’ Card with Crypto Collateral on Scroll Network
Visa has already worked with digital currencies, collaborating with HSBC and Hang Seng Bank on similar projects.
The new pilot will further explore the use of fiat-backed tokens in traditional banking.
Read more: DBS Bank to Launch Crypto Options and Structured Notes for Institutions in Q4 2024
By focusing on privacy and security, Visa hopes to give banks access to blockchain’s advantages while complying with regulations.
Ethereum’s well-established network provides scalability and security, making it an ideal choice for large financial operations.
