TL;DR
- Visa launches Tokenized Asset Platform (VTAP) to issue fiat-backed tokens.
- BBVA will carry out a pilot on Ethereum with VTAP in 2025.
- VTAP will facilitate interoperability between blockchains and automation with smart contracts.
Visa has introduced its new solution called the Tokenized Asset Platform (VTAP), designed to help banks issue and manage fiat-backed tokens on blockchain networks.
This development marks an important step in the integration of traditional finance with blockchain technology, allowing financial institutions to create their own fiat-backed tokens efficiently and securely.
Visa, with its vast global network of over 15,000 financial institutions, leverages its expertise in tokenization to introduce this innovative service.
The VTAP platform allows banks to mint, burn and transfer these tokens in a test environment, providing flexibility to experiment with various use cases before launching live programs, which is expected to happen in 2025.
Banks will also be able to use smart contracts to automate processes such as managing complex credit lines or settling tokenized assets in near real-time, opening the door to greater efficiency in banking operations.
One of the key features of VTAP is its interoperability capability. Visa seeks to create an ecosystem where tokenized real-world assets can securely circulate between different blockchain networks, both public and permissioned.
This means that with a single API connection, participating banks will be able to interact with multiple blockchains, offering new services to their clients and expanding the possibilities of the global financial system.
The potential of Visa VTAP in banking
BBVA has been testing the functionalities of the VTAP sandbox, issuing and transferring tokens on a test blockchain, interacting with smart contracts, and aims to launch a pilot on the Ethereum public blockchain in 2025.
This project with Visa marks an important milestone in the adoption of blockchain-based solutions by banks, which will allow institutions to explore new ways of offering innovative financial services.
Visa, for its part, is committed to working with banks and fintechs to establish standards that enable the safe and reliable growth of these new payment flows.
As more banks adopt fiat-backed token technology, the VTAP platform is positioned as a key solution to ensure that transactions between fiat currencies and digital assets are seamless and efficiently integrated into the financial system.
With VTAP, Visa continues to demonstrate its leadership in the digital payments industry, providing tools that not only improve the efficiency of banks, but also facilitate the adoption of blockchain technology in a secure and compliant manner.
The platform not only represents an opportunity for the digitalization of banking processes, but also a step towards a future where fiat currencies and digital assets coexist fluidly in the same ecosystem.