Visa to launch Ethereum-based asset tokenization platform

Payment giant Visa has announced the creation of a new platform to help banks and financial institutions issue tokens backed by fiat currencies

The new platform is called Visa Tokenized Asset Platform (VTAP) and will be powered by the Ethereum blockchain.

VTAP will allow financial institutions to not only issue tokens, but also test their use in real-world scenarios. The platform is designed to facilitate the movement of real assets such as real estate and debt securities onto the blockchain. 

Banks will be able to use fiat-backed tokens to buy tokenized commodities or government bonds. 

In addition, smart contracts will enable financial institutions to create structured financial products. For example, customers will be able to use tokens to secure loans. That is, goods and assets tokenized on the blockchain will act as collateral.