Preheat oven to 325°F. Butter a 9-inch loaf pan.
Place flour, baking powder and salt in a medium mixing bowl and stir to combine. In a double boiler or microwave, melt 4 ounces of white chocolate in a small heat-proof bowl. Set both aside.
Place butter and sugar in the bowl of a stand mixer fitted with the paddle attachment, and beat on medium-high until light and fluffy, about 2 minutes. Scrape down the sides of the bowl with a spatula. Add the eggs, one at a time, beating until each is completely combined before adding the next egg. Add the vanilla extract and stir to combine. Increase the mixer speed to medium-high and beat for about 30 seconds until eggs are fully incorporated and the batter is light and fluffy.
Reduce the stand mixer speed to low, and add half of the flour mixture. Mix until just combined, then add half of the buttermilk. Add the second half of the flour, followed by the second half of the buttermilk and mix again. Turn off the mixer, and scoop 1 1/2 cups of batter out of the bowl and place back in the same mixing bowl used for the flour.
Add the melted white chocolate to the remaining batter in the stand mixer bowl, and mix on low speed just until combined.
Add cocoa powder, 1 tablespoon buttermilk, and 1 tablespoon of red food coloring to the reserved batter in the medium bowl. Stir together until just combined, adding additional food coloring as needed to get a rich red color.
Pour half of the white chocolate batter into the prepared loaf pan, covering the bottom of the pan. Then top with half of the red velvet batter. Repeat with the remaining white chocolate batter and the remaining red velvet batter so that you have 2 layers of each batter. Use a butter knife or chopstick to swirl the batter together in the pan.
Place loaf pan in preheated oven and bake until it reaches an internal temperature of 205°F or a cake tester comes out clean about 1 hour and 15 minutes. Remove cake from the oven and allow to cool completely on a wire rack.
Melt remaining 2 ounces white chocolate with remaining 2 tablespoons buttermilk in a microwave or double boiler, then add the powdered sugar. Stir until combined then pour over the top of the cake. Top with sanding sugar if desired.