Visa Set to Test Ethereumbased Tokenized Asset Platform for Banks

Visa is set to develop a groundbreaking platform that will enable banks to test and explore the potential of tokenized assets on blockchain networks. This new technology involves converting real-world assets into digital tokens that can be used on blockchain systems. By leveraging this platform, banks will be able to issue fiat-backed tokens, representing traditional currencies, on blockchain networks and participate in digital financial markets. The Visa Tokenized Asset Platform (VTAP) will provide banks with the opportunity to experiment with these tokens, streamlining transactions and enhancing efficiency. The company plans to conduct its initial pilot on the Ethereum blockchain, which is renowned for its support of smart contracts, in 2025. This move is in line with Visa’s previous collaborations in the digital currency space, including partnerships with HSBC and Hang Seng Bank in Hong Kong. Furthermore, Visa has demonstrated its commitment to the token economy and stablecoin sector, as evidenced by the recent launch of a Visa-enabled credit card and wallet app by Ether.fi. This innovative app enables users to access fiat credit using cryptocurrency as collateral.