365Crypto
Visa have been a bit late to the party, and might have started making some significant moves.
Visa has unveiled its Visa Tokenized Asset Platform (VTAP), designed to issue and manage digital assets like stablecoins and central bank digital currencies (CBDCs). This platform is currently in a sandbox phase, allowing institutions to test its core features.
New Technology for Banks and Investors
VTAP is built for institutional investors and central banks, offering a secure way to create, transfer, and settle digital assets on both public and private blockchains. Visa aims to help banks integrate blockchain technology into their operations to streamline processes and digitize financial services.
Smart Contracts and Real-Time Transactions
Visa provides examples of how VTAP can simplify complex banking tasks. For instance, banks can automate credit line management with smart contracts and use fiat-backed tokens for payment processing. Customers could also use tokenized assets to buy commodities or treasuries with near-instant settlement on blockchain.
Future Plans and Blockchain Integration
The platform’s interoperability is key, allowing banks to connect to multiple blockchains through a single API. Visa plans to launch a live pilot of VTAP with select customers in 2025, using the Ethereum blockchain.
Regulatory Scrutiny
While Visa pushes forward with its digital asset strategy, the company faces legal challenges. The U.S. Department of Justice (DOJ) has filed an antitrust lawsuit accusing Visa of monopolizing the debit payments market. Additionally, consumer watchdog groups have criticized Visa and Mastercard for blocking competition in the payments industry.
