Ethereum

Dollar

Bank

Impact

Coin

<p style="text-align: justify">You can also read this news on BH NEWS: <a href="https://en.bitcoinhaber.net/visa-develops-platform-for-blockchain-tokens" data-wpel-link="internal" rel="noopener noreferrer nofollow">Visa Develops Platform for Blockchain Tokens</a><br></p>
<p style="text-align: justify">Visa, a leading payment solutions provider, has unveiled a platform aimed at enabling financial institutions to issue fiat-backed tokens on blockchain technology. This initiative seeks to assist banks in navigating the complexities of tokenization while striving to establish international standards. Cuy Sheffield, head of Visa’s crypto division, underscored the significance of tokenization in facilitating the transfer of diverse cash types, especially as physical assets increasingly transition onto the blockchain.</p>
<h2 id="why-are-banks-interested-in-blockchain-tokens">Why Are Banks Interested in Blockchain Tokens?</h2>
<p style="text-align: justify">The opportunity for banks to issue their own fiat-backed tokens on blockchain represents a regulated entry point to this evolving market. Visa, recognizing the potential of tokenization for central banks, is pushing for the modernization of financial systems. Last year, Visa partnered with HSBC and Hang Seng Bank under Hong Kong Monetary Authority’s Digital Hong Kong Dollar program, exploring blockchain technology for interbank transactions.</p>
<p style="text-align: justify">In addition, Visa’s involvement in the Brazilian Central Bank’s digital real trial demonstrates its commitment to exploring fiat-backed tokens. A growing number of commercial banks are expressing interest in these tokens, including Spain’s Banco Bilbao Vizcaya Argentaria (BBVA), which plans to conduct a pilot project on the Ethereum blockchain by 2025 within Visa’s Tokenized Asset Platform sandbox.</p>
<h2 id="how-will-tokenization-impact-banking-services">How Will Tokenization Impact Banking Services?</h2>
<p style="text-align: justify">Tokenized fiat currencies are poised to revolutionize instant money transfers between banks and clients. Permissioned payment networks like the JPM Coin System support this change. Such transfers are gaining momentum, especially in economies where central banks are actively pursuing wholesale Central Bank Digital Currencies (CBDCs).</p>
<p style="text-align: justify">Catherine Gu, Visa’s director of CBDCs and tokenized assets, noted that banks are prioritizing cross-border money transfers due to existing system limitations. This has driven banks to consider blockchain as a viable solution, with tokenized assets emerging as a key area of interest for transactions.</p>
<p style="text-align: justify">Given different regulatory landscapes, banks are exploring product development on both public and private blockchains. However, the lack of standardized tokenization and smart contracts poses a significant barrier. Visa aims to address these challenges by developing standards to foster interoperability among financial institutions.</p>
<p style="text-align: justify">Visa’s initiative to create a platform for fiat-backed tokens on blockchain represents a strategic step towards integrating traditional financial systems with digital innovations, offering regulated pathways for banks to dive into the tokenization landscape while seeking standardization and interoperability across the sector.</p>
<h5><span style="font-weight:bold;font-size:16px">Continue Reading: </span> <a href="https://en.bitcoinhaber.net/visa-develops-platform-for-blockchain-tokens" data-wpel-link="internal" rel="noopener noreferrer nofollow">Visa Develops Platform for Blockchain Tokens</a></h5>

Visa Develops Platform for Blockchain Tokens

Table of Contents

BH NEWS

Other articles published on Sep 25, 2024

Ulasan Kripto Hari Ini: DOGE Berpeluang Melompat 53 Persen, TRON Dirundung Koreksi, dan FXGuys ya...

Bitget Becomes LaLiga’s Official Cryptocurrency Partner in $10M+ Deal

Hamster Kombat Reaches Milestone and Prepares for Season 2

21.co Integrates Chainlink Proof of Reserve for Enhanced Transparency in Wrapped Bitcoin

Hamster Kombat's Season 1 Airdrop: Only 43% of Users Eligible

StarFi Protocol Activates FIS Burn Mechanism to Reduce Inflation

Join our free newsletter for daily crypto updates!