Visa Helps Banks Test Fiat-Based Tokenized Assets and Smart Contracts

On September 25, Visa launched its new Tokenized Asset platform to help financial institutions test fiat-based tokenized assets and smart contracts, according to Blockworks. The move is designed to promote global standardization and simplify banks' interactions with tokenized assets.Visa's head of crypto, Cuy Sheffield, said that as more physical assets (e.g., real estate, debt securities) come onto the chain, there is an opportunity for banks to issue fiat-backed tokens in a regulated manner. Spain's BBVA Bank has been testing the issuance, transfer and redemption of bank tokens on the Visa platform, with an initial pilot on the ethereum blockchain expected in 2025.