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Visa, the global payments giant, has announced plans to develop a tokenized asset platform for banks. This ambitious project, which is expected to see the light of day in 2025, will use the Ethereum blockchain to allow financial institutions to issue their own crypto tokens backed by trusts.
Crypto: Visa Announces 2025 Tokenized Asset Platform
According to Visa, this initiative represents a big opportunity for banks. By issuing regulated tokens on blockchains, banks will be able to offer their clients direct access to onchain capital markets. This means that customers will be able to participate in these markets more transparently and securely, while benefiting from the speed and efficiency of crypto transactions.
These tokenized assets have several advantages:
- First, they allow for greater asset liquidity as they can be easily traded on crypto platforms.
- In addition, tokenization enables asset splitting, which allows investing in high-value assets with smaller amounts.
- Finally, the transparency inherent in blockchain technology ensures increased traceability and security of transactions.
Why Ethereum?
The choice of Ethereum as the crypto platform for this pilot project is not trivial. Ethereum is one of the most used and trusted blockchains for decentralized applications and smart contracts. Its robustness and flexibility make it an ideal choice for a project of this scale.
Visa hopes this pilot will demonstrate the viability and benefits of tokenized assets for banks and their customers. Because more and more banks and companies are exploring the possibilities offered by blockchain to improve their services and offer new opportunities to their customers. If Visa’s pilot is successful, it could pave the way for wider adoption of tokenized assets in the banking sector.
Visa’s plan to launch a tokenized asset platform on Ethereum in 2025 could change the way banks and their customers interact with capital markets. By offering a regulated and secure solution, Visa hopes to facilitate access to crypto markets and encourage innovation in the financial sector.
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The world is evolving and adaptation is the best weapon to survive in this wavy universe. Essentially a crypto community manager, I am interested in anything directly or indirectly related to blockchain and its derivatives. To share my experiences and raise awareness of a field that fascinates me, there is nothing better than writing articles that are both informative and relaxing.
DISCLAIMER OF LIABILITY
The comments and opinions expressed in this article are solely those of the author and should not be considered investment advice. Before making any investment decision, do your own research.