Visa Launches Platform to Test Smart Contracts and RWA Tokens

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Visa Launches Platform to Test Smart Contracts and RWA Tokens
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Global payments giant Visa has announced the launch of a new platform focused on smart contracts and tokens backed by real assets (RWA), such as real estate and debt securities.

The initiative, called Visa Tokenized Asset Platform (VTAP), aims to facilitate the issuance of fiat-backed tokens and help financial institutions explore the applications of these technologies in the blockchain market.

Banco Bilbao Vizcaya Argentaria (BBVA), one of Spain’s leading banks, is already testing the platform. The institution has plans to launch a pilot project on the Ethereum blockchain in 2025.

BBVA is experimenting with the issuance, transfer and redemption of a banking token, using a test blockchain for this purpose. The aim is to offer these services to selected clients during the initial phase of the project.

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Visa Focuses on RWA Tokens

Cuy Sheffield, head of crypto at Visa, highlighted the growing interest in tokenizing real assets such as real estate and government bonds, which is driving demand for blockchain-based financial solutions.

“We see a huge opportunity for banks to issue their own fiat-backed tokens in a regulated manner and enable their customers to participate in blockchain-based capital markets,” Sheffield said.

Visa has been observing interest from central banks in asset tokenization, including its potential applications to modernize financial infrastructure. The company has participated in pilot projects with HSBC and Hang Seng Bank in the Digital Hong Kong Dollar program. In addition, it collaborated with the Central Bank of Brazil in the development of the Digital Real, the Brazilian digital currency.

The Visa Tokenized Asset Platform aims to create global standards that facilitate interaction between financial institutions in the tokenized asset space.

According to Catherine Gu, head of tokenized assets and CBDCs at Visa, one of the main interests of financial institutions is international transfers. She highlighted, in particular, multinational corporations that operate in several countries and need to move money instantly and continuously, 24 hours a day, 7 days a week.

Among the many potential use cases for banks, the platform offers the ability to move money in real time between customers of the same institution. This can speed up transactions that currently face delays due to intermediaries and conventional banking processes.

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