- Visa plans to help banks explore blockchain technology and smart contracts with fiat-backed tokens.
- The digital payments giant has unveiled a tokenization platform for this &- called Visa Tokenized Asset Platform (VTAP).
- BBVA plans to launch its own stablecoin in partnership with Visa in 2025.
Visa has launched a new service aimed at helping financial institutions with the issuance and management of fiat-backed tokens.
The company announced its blockchain project dubbed Visa Tokenized Asset Platform (VTAP) on Oct. 3, and will allow partners to create and trial various tokenized assets.
VTAP offers a B2B solution which banks can leverage to integrate blockchain technology to bring fiat currencies on-chain. The venture will allow for the creation of stablecoins and other fiat-backed tokens.
“Visa has been at the forefront of digital payments for nearly sixty years, and with the introduction of VTAP, we are once again setting the pace for the industry,” Vanessa Colella, global head of innovation and digital partnerships at Visa, said in a statement.
BBVA to launch Visa-backed stablecoin
According to Visa, banking giant BBVA is set to tap into VTAP for its stablecoin project expected to launch in 2025.
BBVA has explored the VTAP sandbox throughout 2024, testing core functionalities ahead of a live pilot of its stablecoin in 2025. The launch will be on the Ethereum network.
“This collaboration marks a significant milestone in our exploration of the potential of blockchain technology and will ultimately help enable us to broaden our banking services and expand the market with new financial solutions,” said Francisco Maroto, head of blockchain and digital assets at BBVA.
With VTAP, banks can leverage stablecoins within smart contracts, allowing for the digitization and automation of workflows. This will also help power adoption of real-world assets, with banks for instance using the technology to manage complex lines of credit or smart contracts-enabled payments.
Bank customers can also utilize fiat-backed tokens to buy tokenized commodities or treasuries.
Such products include the Franklin Templeton fund FOBXX, which the asset manager just expanded to Aptos.
The post Visa unveils tokenized digital asset platform appeared first on CoinJournal.
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