As a seasoned crypto investor with over a decade of experience under my belt, I find Visa’s latest move to be both exciting and validating. My journey in this space has been filled with ups and downs, but one thing remains constant – the potential of blockchain technology to revolutionize finance.
Visa to develop a platform for banks to test fiat-backed blockchain tokens
Visa unveiled its new Visa Tokenized Asset Platform, designed to facilitate banks and financial organizations in investigating the potential applications of tokenized assets within blockchain technology, as reported by Blockworks.
In simpler terms, tokenization refers to the method by which tangible items like money are transformed into digital versions, known as tokens, which can then be utilized within blockchain systems.
As a financial analyst, I find it intriguing how this technology enables us to mint fiat-backed tokens on distributed ledger systems, thereby opening up avenues for our institution to participate in the dynamic world of digital finance.
INTEL: Visa developing tokenized asset platform for banks, with plans to pilot on Ethereum in 2025
— Solid Intel 📡 (@solidintel_x) September 25, 2024
Visa on the Ethereum blockchain
Visa’s VTAP (Visa Token Service API) enables banks to explore and optimize the usage of digital tokens in transactions, potentially accelerating and streamlining financial exchanges.
In 2025, the company intends to kick off an initial trial using the Ethereum blockchain, collaborating with a chosen set of clients, according to Blockworks.
As a researcher delving into the realm of blockchain technology, I can attest to the widespread popularity of Ethereum as one network among many. What sets it apart is its capability to host smart contracts – these are essentially automated programs designed to manage transactions once specific criteria have been fulfilled.
This action follows Visa’s earlier endeavors in the digital currency sector, as it has previously partnered with HSBC and Hang Seng Bank on similar initiatives in Hong Kong. The trial demonstrated improved privacy and security in transactions, as well as potential uses for tokenized assets and programmable finance solutions.
visa is involved in the field of tokens and stablecoins, and in September, Ether.fi debuted a credit card and wallet app that works with Visa. This setup enables users to borrow fiat credit by using cryptocurrency as security.
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2024-09-25 16:48