On Thursday, Visa Inc. (NYSE:V) announced its new Visa Tokenized Asset Platform (VTAP). It is designed to help financial institutions issue and manage fiat-backed tokens on blockchain networks, bridging existing fiat currencies with blockchain technology.

BBVA has been testing core VTAP functionalities this year, including issuing, transferring, and redeeming a bank token on a testnet blockchain. They aim to launch an initial pilot with select customers on the public Ethereum blockchain in 2025.

“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, Global Head of Innovation and Digital Partnerships of Visa.

Visa’s VTAP allows banks to safely and efficiently bring fiat currencies onto blockchain networks.

It offers easy integration with minimal technical setup through accessible APIs, enabling banks to mint and transfer fiat-backed tokens.

VTAP supports programmability, allowing banks to use smart contracts to automate workflows and transactions.

Additionally, it promotes interoperability across various blockchains, facilitating secure cross-chain exchanges of tokenized real-world assets.

“This collaboration marks a significant milestone in our exploration of the potential of blockchain technology and will ultimately help enable us to broaden our banking services and expand the market with new financial solutions,” said Francisco Maroto, Head of Blockchain and Digital Assets, BBVA.

Source : Yahoo Finance - Oct 6, 2024