Visa Expands Tokenized Deposit Infrastructure for Programmable Payments

Visa is expanding its infrastructure for tokenized deposits to enable banks to issue programmable digital assets backed by traditional deposits.

The move is part of Visa's strategy to expand settlement using blockchain technologies and stablecoins, allowing financial institutions to turn bank deposits into tokenized assets with 24/7 programmable use.

This initiative would give banks a way to offer customers the speed and flexibility typically associated with stablecoins without moving funds off the balance sheet.

According to Visa's Chief Product & Strategy Officer, Jack Forestell, tokenized deposits could become a bridge between the traditional banking system and the blockchain economy, making existing financial processes compatible with programmable payments.