Visa recently introduced an innovative venture known as the Visa Tokenized Asset Platform (VTAP), aimed at facilitating banks in the issuance of fiat-backed tokens on blockchain systems.
On October 3rd, the renowned digital payment company made it clear that VTAP is now operational through its Developer Platform, enabling associated institutions to create and evaluate digital assets, including stablecoins and Central Bank Digital Currencies (CBDCs).
The platform is currently functioning within a sandbox environment, with plans for its live launch scheduled for 2025.
Understanding VTAP
Visa characterized VTAP as a strategic application of its expertise in emerging technologies, such as smart contracts, to aid banks in delivering blockchain services. The initiative is expected to be extended to Visa’s extensive global network, comprising over 15,000 clients across more than 200 countries.
Designed to furnish Visa’s institutional clientele with a comprehensive infrastructure, VTAP ensures the secure minting, transferring, and settling of digital asset transactions on both public and private blockchains.
As per Visa’s announcement, VTAP will permit banks to utilize their fiat-backed tokens within smart contracts, thereby automating current processes and enabling the exchange of novel types of real-world assets.
Vanessa Colella, Visa’s global head of innovation and digital partnerships, expressed that VTAP could significantly promote institutional comfort with blockchain technologies, stating:
“We’re excited to leverage our experience with tokenization to help banks integrate blockchain technologies into their operations.”
BBVA’s Involvement with VTAP
Banco Bilbao Vizcaya Argentaria (BBVA) stands out as one of the early organizations adopting VTAP, as detailed in their press release.
BBVA has been actively testing key functionalities of the platform within the sandbox environment throughout this year. Their experiments include the issuance, transfer, and redemption of a bank token on a testnet blockchain, along with interactions involving smart contracts.
Looking ahead, the bank intends to launch a live pilot on the Ethereum blockchain in collaboration with selected clients in 2025.
Francisco Maroto, the Head of Blockchain and Digital Assets at BBVA, highlighted that delving into blockchain’s capabilities will empower the bank to broaden its service offerings and unveil innovative financial solutions.