Reports: Card Issuing in 1,000 Words; Banking in the Tokenized Economy; Three Types of Digital Money

Key Takeaways

• Visa's VAS revenue hit $11 billion in FY2025, up 24% YoY
• Tokenization drives banks to invest in custody, AI settlement platforms
• Digital money split: CBDCs, deposit tokens, stablecoins shape regulation
• Real‑time payment infrastructure pressures legacy batch‑based settlement systems

Pulse Analysis

The tokenization wave is redefining the monetary ecosystem. Central banks are piloting CBDCs, while private actors issue deposit tokens and stablecoins, each with distinct backing and settlement mechanics. Regulators are scrambling to classify these assets, and the resulting framework will dictate how liquidity, monetary policy and financial stability are managed in a programmable economy.

At the same time, card‑issuing remains a cornerstone of consumer payments, but the underlying value chain is fragmenting. Visa’s Value‑Added Services division illustrates how networks can capture high‑margin revenue by offering software layers that operate across any payment rail. In fiscal 2025 the VAS portfolio grew 24% to $11 billion, lifting its share of net revenue to 24% and expanding its international footprint, a clear sign that banks and merchants are demanding flexible, API‑driven solutions.

For traditional banks, the convergence of tokenized assets and real‑time settlement creates both a threat and an opportunity. Legacy batch processing systems lag behind the expectations of a 24/7 digital economy, prompting institutions to invest in hybrid‑cloud custody, AI‑enabled clearing and programmable money platforms. Companies that successfully integrate these technologies will unlock new revenue streams, improve customer experience, and stay competitive against fintech challengers that are already operating on fully real‑time, token‑based infrastructures.