Visa is developing a new technology infrastructure layer designed to enable banks to convert traditional deposits into tokenised, programmable digital money that operates continuously. The payments giant’s move positions it as a critical intermediary in the emerging tokenised banking ecosystem, providing the rails for institutions to offer always-on deposit products without building blockchain infrastructure themselves.
The initiative targets commercial banks looking to modernise their deposit offerings while maintaining regulatory compliance and existing customer relationships. By creating this standardised layer, Visa aims to accelerate institutional adoption of tokenised deposits, which can settle instantly across multiple networks and support programmable features like automated compliance and real-time treasury management.
The announcement comes as major banks globally explore tokenisation to reduce settlement times and operational costs. Visa’s infrastructure approach could eliminate friction points that have slowed institutional blockchain adoption, particularly around interoperability and technical complexity.
FXnCO Insight
Banks leveraging Visa’s tokenised deposit layer could gain significant competitive advantages in corporate treasury services, making this a key development to monitor for shifts in institutional payment flows and correspondent banking relationships.
Source: Finextra