Visa is readying its blockchain-based digital identity system for cross-border payments for launch in the first quarter of 2019. The system, dubbed Visa B2B Connect, will provide a blockchain-based digital identity solution for financial institutions to securely process cross-border payments. The system reportedly tokenizes sensitive business data – such as banking details and account numbers – granting them a unique cryptographic identifier that will be used for transactions on the platform.
From a technical standpoint the solution will integrate a Hyperledger Fabric framework (which is hosted by the Linux Foundation and was developed with input from IBM) with Visa’s “core assets,” which the release claims will establish a scalable permissioned network for use in the financial sector. Jason Kelley, general manager at IBM Blockchain Services, is quoted as saying that the system represents one of the most “powerful examples to date of how blockchain is transforming payments.”
Fintech provider Bottomline Technologies – which serves 1,200 financial institutions, according to the release – is also partnering with Visa on the B2B Connect system, a partnership that will enable “mutual financial institution clients” to access the system. Even as it embraces blockchain’s potential, Visa – alongside MasterCard – has this month reportedly moved to group cryptocurrency and Initial Coin Offering under a new “High-Risk Securities Merchants” classification, meaning interaction with them will be subject to additional monitoring.