- Visa plans to help banks explore blockchain technology and smart contracts using fiat-backed tokens.
- The digital payments giant unveiled a tokenization platform designed for this purpose — called the Visa Tokenized Asset Platform (VTAP).
- BBVA intends to launch its own stablecoin in partnership with Visa in 2025.
Visa has launched a new service intended to help financial institutions issue and manage fiat-backed tokens.
The company announced its blockchain initiative, called the Visa Tokenized Asset Platform (VTAP), on October 3, giving partners the ability to create and test a variety of tokenized assets.
VTAP offers a B2B solution banks can use to integrate blockchain technology and bring fiat currencies onto the ledger.
The platform enables 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,” said Vanessa Colella, Visa’s Global Head of Innovation and Digital Partnerships, in a statement.
BBVA to launch Visa-supported stablecoin
According to Visa, banking giant BBVA plans to use VTAP for its stablecoin project, with a launch targeted for 2025.
BBVA tested VTAP’s sandbox environment throughout 2024, validating core functionality ahead of a live pilot expected in 2025. The stablecoin launch will occur on the Ethereum network.
“This collaboration marks an important milestone in our exploration of blockchain’s potential and will ultimately help us broaden our banking services and expand the market with new financial solutions,” said Francisco Maroto, head of blockchain and digital assets at BBVA. Using VTAP, banks can deploy stablecoins within smart contracts to digitize and automate workflows.
The capability will also accelerate adoption of real-world assets. For example, banks could use the technology to manage complex credit facilities or execute payments governed by smart contracts.
Bank customers may also use fiat-backed tokens to purchase tokenized commodities or government bonds.
One such offering is the Franklin Templeton FOBXX fund, which the asset manager has recently extended to the Aptos network.