Visa to launch live platform to support banks issuing digital tokens in 2025
Visa has launched the Visa Tokenized Asset Platform (VTAP), a new initiative to help banks issue fiat-backed tokens on blockchain networks.
On October 3, the digital payments giant announced that VTAP is now accessible through its developer platform. This will allow participating institutions to develop and test digital assets such as stablecoins and central bank digital currencies (CBDCs).
Currently, the platform operates in a sandbox environment, but Visa plans to enable real-time use by 2025.
VTAP
Visa described VTAP as a way to help banks provide blockchain services by applying its knowledge of emerging technologies, including smart contracts. The company plans to expand this solution to a global network of more than 15,000 customers in more than 200 countries.
VTAP is designed to provide Visa’s institutional customers with an end-to-end infrastructure for securely issuing, transferring, and settling digital asset transactions on both public and private blockchains.
According to Visa, VTAP will allow banks to use fiat-backed tokens within smart contracts. This helps automate existing workflows and facilitate the exchange of new types of physical assets.
Vanessa Colella, head of global innovation and digital partnerships at Visa, said VTAP will drive institutional adoption of blockchain technology. She added:
“We are excited to leverage our tokenization experience to help banks integrate blockchain technology into their operations.”
BBVA pilot
Banco Bilbao Vizcaya Argentaria (BBVA) is one of the early adopters of VTAP, according to a press statement.
BBVA has been testing important features of its platform in the sandbox this year. These tests include the issuance, transfer, and redemption of bank tokens on the testnet blockchain along with interaction with smart contracts.
The company plans to launch a live pilot on the Ethereum blockchain for select customers in 2025.
Francisco Maroto, head of blockchain and digital assets at BBVA, emphasized that exploring the potential of blockchain will help the bank expand its services and introduce new financial solutions.
