As a seasoned researcher with a keen interest in the intersection of traditional finance and blockchain technology, I find myself intrigued by the recent developments in the digital asset space. Visa’s launch of the Visa Tokenized Asset Platform (VTAP) is a significant step forward in establishing global guidelines for financial institutions exploring blockchain technology. The potential for banks to issue their own regulated fiat-backed tokens and enable customers to engage with on-chain capital markets is indeed exciting.
Visa unveils its Visa Tokenized Asset Platform (VTAP), designed to help banks create and experiment with fiat-backed digital tokens. This platform aims to establish global standards for financial organizations exploring the use of blockchain technology, on a worldwide scale.
According to Cuy Sheffield, the executive in charge of cryptocurrency at Visa, this move offers substantial chances for banks to establish their own regulated digital tokens tied to national currencies. These tokens would enable banking clients to interact directly with decentralized financial markets.
As a researcher, I am excited to share that Visa is actively participating in central bank digital currency (CBDC) projects. For instance, in collaboration with the Hong Kong Monetary Authority, and Brazil’s central bank, where we are involved in a pilot program named Drex. In this context, I work alongside XP, one of Brazil’s prominent independent brokers, to contribute to the successful implementation of CBDC initiatives.
This year, Banco Bilbao Vizcaya Argentaria (BBVA) in Spain has been experimenting with the VTAP’s sandbox on a trial blockchain. Their goal is to conduct trials on the Ethereum blockchain by 2025. VTAP intends to facilitate various applications such as instant money transfers between bank customers, interbank transfers using wholesale Central Bank Digital Currencies (CBDCs), and cross-border transactions for international corporations.
Catherine Gu, who leads Visa’s CBDC and tokenized assets division, pointed out the current restrictions faced by worldwide organizations in terms of their constant need for financial flexibility around the clock using traditional payment systems.
Swift, a global payment service company, has just introduced a new system designed to boost the practical application of tangible assets (physical assets).
Instead of concentrating on tokenization like Visa, Swift’s initiative is geared towards establishing a worldwide system that fosters compatibility among various central bank digital currencies (CBDCs). It will employ a Delivery-versus-Payment (DvP) and Payment-versus-Payment (PvP) framework to streamline these transactions. In simpler terms, Swift’s program is designed to make it easier for different types of CBDCs to work together seamlessly by using this model for their transactions.
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2024-09-25 20:37