• Visa has developed a new product to help banks issue fiat-backed tokens on the Ethereum network
• The Visa Tokenized Asset Platform (VTAP) will enable the development of fiat-backed tokens powered by smart contracts to help digitize and automate existing processes for exchanging real-world assets (RWAs)
• Spanish bank BBVA will be one of the first financial institutions to use VTAP and expects to launch a live pilot in 2025
Visa has developed a new product to help banks issue fiat-backed tokens on the Ethereum blockchain. One of the first banks to use the platform will be Spanish bank BBVA.
Visa Tokenized Asset Platform
Visa’s new Tokenized Asset Platform (VTAP) will enable banks to issue fiat-backed tokens powered by smart contracts. This will help digitize and automate processes to exchange real-world assets like commodities or bonds.
Banks can use VTAP to purchase tokenized real-world assets and settle transactions almost instantly using tokens. BBVA plans to launch a live pilot using the platform in 2025.
Visa and Blockchain
Visa already has experience with blockchain and crypto. In March 2021, it started processing payments in stablecoin USDC on Ethereum. Earlier this month, Visa also became a partner for Brazil’s central bank CBDC pilot project.
Partnership with BBVA
Spanish bank BBVA will be one of the first to use Visa’s new VTAP platform. BBVA expects to roll out a live pilot in 2025 after purchasing tokenized real world assets and settling transactions with tokens.
Conclusion
Visa’s VTAP platform marks a major step in bringing blockchain technology to banking. It will allow banks like BBVA to issue tokenized fiat-backed assets on Ethereum. This has the potential to greatly increase speed and efficiency for exchanging real world assets.
