You can also read this news on COINTURK NEWS: Visa Launches Tokenized Asset Platform for Financial Advancement

VISA operates as a global payment network, employing nearly 20,000 staff members. Alongside Mastercard, it stands as one of the largest payment systems worldwide, showing a persistent interest in cryptocurrencies. The narrative of Bitcoin was rooted in the ideal of executing payments more swiftly, transparently, and cost-effectively. Now, blockchain technology has reached an entirely different level.

Visa Token Issuance Platform

A new product has been launched targeting corporate clients and even governments. This service, known as the Visa Tokenized Asset Platform (VTAP), facilitates the issuance of tokenized assets. Currently, several institutions, including Banco Bilbao Vizcaya Argentaria (BBVA), are testing VTAP.

The platform eliminates many technical challenges associated with central banks’ digital fiat currencies and allows banks to issue stablecoins. This pivotal step for cryptocurrencies opens the door to a new era characterized by the integration of various blockchains. Major players like Franklin and BlackRock are already issuing tokenized bonds on cryptocurrency networks, with their value reaching billions of dollars.

Vanessa Colella, Visa’s Global Head of Innovation and Digital Partnerships, expressed excitement about leveraging their experience in tokenization to assist banks in integrating blockchain technologies into their operations.

Banking and Blockchain

Through VTAP, banks will be able to offer tokenized commodities, treasury bonds, and more, tradeable with stablecoins in the future. The transition of financial services to blockchain has been discussed for years, and it is now becoming a reality. Set to fully launch in 2025 on the Ethereum network, VTAP also provides insights into the future of ETH pricing.

With API connections, multiple banks can integrate into this platform, providing blockchain-based services to their clients. This latest initiative serves as a reminder of the direction banking is headed, aiming to bridge decentralized finance and traditional banking.

For major companies like Visa and Mastercard to remain relevant, they needed to evolve into entities that facilitate this transformation, which they are successfully doing.

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