The post Visa Helps Banks Test Tokenized Assets Amid Legal Challenges appeared on BitcoinEthereumNews.com.

Visa, the American multinational payment services giant, has introduced a tokenized asset platform to assist banks in testing tokenized assets and smart contracts. Spain’s Banco Bilbao Vizcaya Argentaria (BBVA) is already exploring the new Visa Tokenized Asset Platform (VTAP) in its sandbox environment. This move signals Visa’s efforts to protect its market share as it faces increasing competition and legal challenges. Visa Taps Into Tokenized RWAs Visa has introduced a new platform to help banks test tokenized assets and smart contracts. Spain’s BBVA will be one of the first to try it, planning a pilot with select customers on the Ethereum blockchain in 2025. Visa says this platform will help global banks work with fiat-backed tokens. This move is part of Visa’s ongoing push into the digital asset space, using tokenization to expand its influence. “We think that [tokenization] creates a significant opportunity for banks to issue their own fiat-backed tokens on blockchains. Banks must do it in a regulated way and enable their customers to access and participate in these eon-chain capital markets,” Visa Crypto Head Cuy Sheffield said. Read more:  Real World Asset (RWA) Backed Tokens Explained Visa’s interest comes as financial institutions, including Central Banks and asset managers like BlackRock, State Street, and Franklin Templeton, among others, progressively explore tokenization. This reflects the interest of traditional finance (TradFi) in the sector. Its potential to steer finance into a modern and more digitized world is a key selling point and explains the sector’s growth. For Visa, tokenized RWAs also present an opportunity to defend its market share as growing stablecoin volumes continue to pose a threat. In May, Research firm Sacra revealed how stablecoins continue to challenge Visa on total payment volume. “Stablecoins are on track to eclipse Visa (NYSE: V) on total payments volume (TPV), propelled by…

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Filed under: News - @ September 25, 2024 9:19 pm