Visa is working on a blockchain interoperability hub. The Company is looking to launch a blockchain-based infrastructure. That structure will enable financial institutions to make transactions using a blockchain network. Hub is a standard for cross-border transactions.
What is a blockchain interoperability hub?
A blockchain interoperability hub is an ecosystem that transfers value from one cryptocurrency to another. A blockchain interoperability hub is a shared platform that is used to interact with blockchains. In the crypto sphere, there are a lot of coins, tokens, and currencies that are not interchangeable. There are several reasons why this is the case, but the main issue is that there is no central ecosystem. A blockchain interoperability hub is a central platform that connects different blockchains.
How does the blockchain interoperability hub work?
A blockchain interoperability hub allows the exchange of information between blockchains. Many different blockchains can build at different times and protocols. So, these blockchains are not compatible with each other. There are attempts to create standards for blockchains. But the only way to exchange information between blockchains is through centralized exchanges.
What does the blockchain interoperability hub mean for cryptocurrencies?
It means that crypto users have to have an account on every crypto exchange to trade crypto. The blockchain interoperability hub would allow crypto users to have one account on the blockchain. It would also allow users to sell crypto with fiat currency. Visa is developing it to enable instant transfers between banks using cryptocurrencies. The project is part of Visa’s innovation lab in Singapore. It aims to ease cross-border payments between banks. The system will allow banks to issue their digital tokens that are backed by fiat currencies. These digital tokens can then be used to help transactions between institutions.
Visa has announced a new project Visa B2B Connect. A blockchain-based system for cross-border payments. The project will build on top of the open-source hyper ledger Fabric project. And Visa says it will be scalable, anonymous, and fast. So, the solution will use a private version of the Ethereum network’s blockchain. And be built by a third-party fintech company called Chain that Visa has been working with since 2016.
Visa aims to bring Visa B2B Connect to the blockchain.
The US payments network Visa is working with a blockchain consultancy Chain. It will create an interoperability hub for the B2B Connect service. So, It also facilitates cross-border payments between businesses. Startup Chain will develop the back-end infrastructure for Visa’s B2B Connect platform. The network, life in pilot across the US, is expected to roll out by the end of the year. Visa B2B Connect is one of several blockchain projects that Visa is working on.
Conclusion:
Visa is working on a blockchain interoperability hub that will enable cross-border transactions. The Company revealed this in a press release Friday, June 29. It will be designed to enable transfers between digital wallets and Visa-branded debit and credit cards in its early stages. The hub will also act as an intermediary to settle transactions.
This payments network will be a one-stop-shop for domestic and cross-border blockchain payments. So, the Company has already joined a public-private partnership with KlickEx. And also join with the Chain and the World Bank. The system is going to be built on the Corda platform of the blockchain payments provider R3.
