Visa has launched the Visa Tokenized Asset Platform (VTAP), a new initiative aimed at helping banks issue tokens based on fiat currencies. At the same time, SWIFT announced that banks in North America, Europe and Asia were starting tests related to digital assets.
Visa Tokenized Asset Platform
Visa’s VTAP is available through a dedicated development platform and enables participating institutions to develop and test digital assets such as stablecoins and central bank digital currencies (CBDCs). At this stage, the whole thing works in the so-called environment. sandbox, but this is expected to change in 2025.
Visa says its new project is a way to use new technologies, including smart contracts, in the banking market. According to the assumptions, VTAP is to be used by over 15,000 customers in over 200 countries.
The project is intended to provide Visa’s institutional clients with a comprehensive infrastructure for creating, transmitting and settling transactions using digital assets. Additionally, it will allow banks to use tokens based on fiat currencies as part of smart contracts. This will help you automate your payment processes.
SWIFT is going in the same direction
At about the same time, it was possible to learn that SWIFT was moving in a similar direction. Banks in North America, Europe and Asia will begin testing digital assets and currency transactions starting next year. The program aims to test how financial institutions can use their existing SWIFT connections to process transactions involving both traditional and digital assets.
Everything doesn’t happen for a reason. SWIFT said institutional interest in digital assets is growing rapidly. In addition, as many as 134 countries are analyzing CBDC emissions. In turn, the market for tokenized assets may reach a value of USD 30 trillion by 2034. 91% of institutional investors showed interest in this topic.
The Hong Kong Monetary Authority (HKMA) and Banque de France are currently collaborating with SWIFT in preparation for next year’s tests. They are exploring the possibilities of the SWIFT network as part of a broader European Central Bank initiative to develop new payment technologies.
