Visa has introduced its new Visa Tokenized Asset Platform (VTAP), designed to help banks issue and test fiat-backed tokens. This initiative is part of Visa’s broader efforts to set global standards for financial institutions exploring blockchain technology.
Cuy Sheffield, Visa’s head of crypto, emphasized that VTAP presents a major opportunity for banks to create regulated fiat-backed tokens, enabling customers to access on-chain capital markets. The platform’s launch aligns with Visa’s active involvement in central bank digital currency (CBDC) projects, including partnerships with the Hong Kong Monetary Authority and Brazil’s central bank.
In Brazil, Visa is working with XP, a prominent brokerage, as part of the Drex pilot program initiated by Brazil’s central bank. Additionally, Banco Bilbao Vizcaya Argentaria (BBVA) in Spain has been testing VTAP on a sandbox blockchain this year. The platform is set to pilot on the Ethereum blockchain in 2025, aiming to support real-time money transfers between bank clients, interbank transfers using wholesale CBDCs, and cross-border transactions for multinational corporations.
Catherine Gu, Visa’s head of CBDC and tokenized assets, noted that the current limitations of traditional payment systems pose challenges for global organizations requiring round-the-clock money mobility. VTAP seeks to address these challenges by fostering greater interoperability across financial institutions involved in tokenization.
Visa’s development of global guidelines will help reduce fragmentation in tokenized asset transfers across countries, offering a streamlined approach to cross-border digital payments.
Meanwhile, global payments provider Swift has also made strides in the digital currency space, launching a platform focused on real-world assets (RWAs). Unlike Visa’s emphasis on tokenization, Swift’s platform promotes interoperability among various central bank digital currencies (CBDCs), using Delivery-versus-Payment (DvP) and Payment-versus-Payment (PvP) models to facilitate seamless transactions.
Visa’s VTAP initiative is expected to play a key role in shaping the future of digital asset management and CBDCs, offering financial institutions the tools to innovate in the rapidly evolving blockchain landscape.
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