Traditional finance (TradFi) moving into blockchain is not a new trend in the industry. While it is not new, the shift is gradually maturing. In recent developments, Visa, one of the largest payment companies, will join the Canton Network, a blockchain designed for institutions, to act as a super validator on the network.
Visa becomes the first payment company to run on Canton Network
For Visa, this major move would create ripple benefits because it is the first time a high-profile payments company is joining the Canton Network as a super validator. If you are eager to know what a super validator is, it is as simple as helping the blockchain run securely and participate in governance.
Visa is one of the 40 super validators on the Canton Network. The rest of the validators expand to stablecoin issuer Circle, oracle network Chainlink, trading tech provider Talos, and more.
Visa’s role as a super validator
As a top-tier node, Visa will validate transactions, maintain network security, and help Canton govern the system. Canton Network primarily focuses on privacy, compliance, and real-world assets (RWA) tokenization. As such, Visa, being a major payments company, can strategically help Canton to:
- participate in protocol upgrades through voting,
- keep standards for privacy, security, and compliance,
- ensure the network adheres to financial industry standards,
- enhance fast transaction confirmations,
- manage settling tokenized assets and collateral,
- onboard news assets,
- prevent network malfunctions,
- enhance interoperability with other blockchains
Institutions look for trustworthy networks
Institutions like banks participating in blockchain firms always prefer networks that have trusted operators. In this case, Visa is a trusted payments operator that will help boost credibility on Canton Network.
For instance, Goldman Sachs, BNP Paribas, Deutsche Börse, and BNY Mellon are some of the firms already using Canton Network, managing more than 700,000 daily transactions. These financial institutions and investment firms turn to Canton because of the network’s strong trust factor.
Privacy is also a leading factor for banks using blockchain technology. As a multi-chain crypto trading platform, Byrrgis commented, “Privacy was always the missing piece for bank-grade rails. That’s why this matters.”
Another crypto enthusiast on X noted that when institutions care more about privacy than hype, the real adoption is getting closer.
Now, it is important to note that Visa’s blockchain leap is not a debut. Recently, digital collectible brand Pudgy Penguins launched a Pengu card backed by the Visa network.
Besides, the payment company has announced plans to expand stablecoin-connected Visa cards to over 100 countries with the help of stablecoin infrastructure platform Bridge.
