Visa, in collaboration with other banks and Hong Kong regulator, completes a groundbreaking pilot program that tokenizes deposits for faster interbank settlements.central bank digital currencies , known as the e-HKD program, centered on the concept of tokenized deposits. This process aims to modernize traditional banking by leveraging blockchain technology to convert customers’ deposited funds into digital tokens and record them on a blockchain ledger.
This significant reduction in settlement times has the potential to revolutionize the way financial institutions conduct transactions and handle interbank transfers, offering a clear advantage over traditional methods. This continuous operation is a substantial advantage, allowing for uninterrupted financial activities and significantly improving overall efficiency.