Tokenization News – In July 2025, Visa launched a pilot tokenized payment system on the Ethereum blockchain, enabling instant cross-border transactions for merchants and consumers.
This initiative, aims to reduce fees and delays in international payments, competing with stablecoins and JPMorgan’s JPMD token.
By tokenizing fiat-backed payment tokens, Visa offers a secure, scalable solution, aligning with the $25 billion tokenized asset market’s growth.
This move positions Visa as a leader in tokenized payments, bridging traditional finance and Web3 ecosystems.
Tokenized Payments Slash Cross-Border Costs
Visa’s tokenized payment system replaces traditional SWIFT transfers with blockchain-based tokens, cutting fees by 30% and enabling settlements in seconds.
Merchants in Asia and Europe can accept tokenized payments, backed by fiat reserves, ensuring stability.
Unlike volatile cryptocurrencies, these tokens maintain a 1:1 peg, making them ideal for global commerce.
The pilot’s early success, processing $10 million in transactions, highlights tokenized payments’ potential to revolutionize cross-border financial flows.
Ethereum Powers Tokenized Payment Infrastructure
Built on Ethereum’s layer-2 solutions, Visa’s system leverages smart contracts for secure, transparent transactions.
The blockchain’s interoperability with Web3 platforms allows merchants to integrate tokenized payments into decentralized finance applications, such as invoice financing.
This mirrors Qatar National Bank’s QCDT fund, which uses tokenized payments for Web3 commerce.
Ethereum’s scalability ensures Visa’s system can handle high transaction volumes, positioning tokenized payments as a mainstream solution in 2025.
Regulatory Clarity Drives Tokenized Payments
Visa’s pilot complies with SEC and EU MiCA regulations, ensuring tokenized payments meet financial standards.
Partnerships with custodians like Fireblocks enhance security, fostering trust among merchants and consumers.
As tokenized payments gain traction, with Brazil’s Central Bank regulating stablecoins, Visa’s initiative could inspire competitors like Mastercard to explore similar systems, solidifying tokenized payments as a cornerstone of global finance.
