Quick take:
- Spain-based multinational financial services company BBVA has been one of the early adopters of Visa’s platform for tokenised assets.
- The project is part of Visa’s efforts to streamline global standards for entities exploring blockchain-based products amid the growing adoption of tokenised real-world assets.
- This follows Visa’s pilot with HSBC and Hang Seng Bank in the Hong Kong Monetary Authority’s Digital Hong Kong Dollar program last year.
Visa has launched a new platform that helps banks test tokenised assets. The financial services company’s new platform will allow financial institutions to issue fiat-backed tokens and test out their use cases.
Spain-based multinational financial services company Banco Bilbao Vizcaya Argentaria (BBVA) has already been using the new platform, according to a report by Blockworks.
This is part of Visa’s grand plan of streamlining global standards for entities exploring blockchain-based products amid the growing adoption of tokenised real-world assets.
Last year, Visa ran a pilot with HSBC and Hang Seng Bank to test the Hong Kong Monetary Authority’s Digital Hong Kong Dollar program.
The tokenisation of real-world assets has become one of the burgeoning segments of the crypto industry with central banks leading with their CBDCs (Central Bank Digital Currencies) and asset managers like BlackRock with their Ethereum-based tokenised fund BUIDL.
Visa wants to offer the same opportunity to banks, helping them create tokenised products that they can use for corporate purposes and customers.
JPMorgan, through its blockchain subsidiary Onyx, already offers tokenisation opportunities to financial institutions with the likes of Goldman Sachs and BNP Paribas among the early adopters. Last September, Citigroup launched a private token service for institutional clients.
Visa’s head of crypto products Cuy Sheffield highlighted real estate to debt securities as some of the products driving the adoption of tokenised real-world assets, adding that there’s a growing need to bring more forms of cash onto those rails to trade them.
“We think that creates a significant opportunity for banks to issue their own fiat-backed tokens on blockchains, do it in a regulated way and enable their customers to access and participate in these on-chain capital markets,” he told Blockworks.
Stay on top of things:
Subscribe to our newsletter using this link – we won’t spam!
Follow us on X and Telegram.
Credit: Source link
