Visa (V) Said Pressing for Institutions to Begin Using Blockchain Tech for Interbank Payments

September 1, 2016 6:28 AM EDT

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Visa (NYSE: V) is said to be coercing lenders to test a system which uses blockchain -- the tech behind bitcoin -- for making payments to each other.

The Financial Times said Visa has been testing the tech for 18 months and has partnered with startup BTI Group on the effort to process interbank payments.

Visa's goal is to cut credit risk, speed up settlement time, and cut costs for the payments, according to one executive.

The project will use smart contracts, or code written on blockchain which will carry out certain actions, to handle regulatory and compliance issues associated with the transfers.

Shares of Visa are flat in early trading Thursday.

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