New York, Sunday, October 06, 2024-Visa has announced its upcoming global Visa Tokenized Asset Platform (VTAP), set to launch in 2025, which will enable banks to issue and manage fiat-backed stablecoins and other digital tokens.
The platform, currently in the testing phase, will allow banks to mint, burn, and transfer stablecoins for internal operations. BBVA, a leading Spanish bank, is one of the first institutions testing the platform to issue a stablecoin for internal transactions, potentially backed by the euro or U.S. dollar.
The initial tests will run on the Ethereum blockchain, with live operations expected in 2025. Visa plans to scale the platform for broader interoperability between banks and other financial institutions. BBVA, a pioneer in digital assets since 2014, is preparing to use VTAP to streamline digital transactions and integrate blockchain technology into traditional financial systems.
Visa’s push into the digital assets space aligns with the global trend of integrating blockchain into mainstream finance. Stablecoins—digital currencies backed by fiat money—have gained popularity due to their potential to reduce transaction costs and increase efficiency in cross-border payments. By launching VTAP, Visa aims to offer a secure platform for banks to manage tokenized deposits and stablecoins, enhancing the overall financial ecosystem. This move positions Visa at the forefront of blockchain innovation, furthering its digital transformation strategy.
