Visa Introduces Blockchain Innovations for Financial Institutions
- Visa aims to assist banks in leveraging blockchain technology through fiat-backed tokens.
- The new platform, known as the Visa Tokenized Asset Platform (VTAP), will facilitate tokenization.
- In partnership with Visa, BBVA is set to launch a stablecoin by 2025.
Visa has recently unveiled a groundbreaking service designed to support financial institutions in issuing and managing fiat-backed digital tokens. This initiative, termed the Visa Tokenized Asset Platform (VTAP), was announced on October 3, 2023, and is geared towards allowing partners to create and test various tokenized assets.
How VTAP Enhances Financial Solutions
VTAP serves as a B2B solution for banks, facilitating the incorporation of blockchain technology to bring fiat currencies onto blockchain networks. This venture enables the formation of various fiat-backed tokens, including stablecoins.
“With nearly 60 years of leadership in digital payments, Visa continues to pioneer industry changes with the launch of VTAP,” stated Vanessa Colella, the global head of innovation and digital partnerships at Visa.
BBVA’s Vision for a Visa-Backed Stablecoin
According to Visa, banking giant BBVA intends to utilize the VTAP for its upcoming stablecoin project, anticipated to debut in 2025.
Throughout 2024, BBVA will actively test the core functionalities of the VTAP, preparing for a live pilot of its stablecoin. The stablecoin is set to operate on the Ethereum blockchain.
“This partnership represents a pivotal moment in our exploration of blockchain capabilities, paving the way for expanded banking services and innovative financial solutions,” commented Francisco Maroto, head of blockchain and digital assets at BBVA.
Applications of VTAP in Banking
With the VTAP platform, banks can effectively utilize stablecoins within smart contracts, thereby allowing the digitization and automation of various workflows. This technology can facilitate the adoption and management of real-world assets, enabling banks to streamline complex credit lines or automate payment processes through smart contracts.
Customers of banks will also benefit from the ability to purchase tokenized commodities and treasuries using fiat-backed tokens. One example of such products is the Franklin Templeton fund FOBXX, which has recently expanded to the Aptos blockchain.