Visa has introduced a new product aimed at revolutionizing the way banks use blockchain technology. The Visa Tokenized Asset Platform (VTAP) will enable financial institutions to issue tokens backed by fiat currencies on blockchain networks. The platform is designed to help banks seamlessly connect traditional fiat currencies to emerging blockchain-based assets.
According to Visa’s announcement, VTAP provides banks with a secure and efficient way to mint, burn and transfer fiat-backed tokens, such as token deposits and stablecoins. This product represents Visa’s latest effort to advance digital payment technologies by leveraging blockchain innovation. The platform is available on the Visa Developer Platform, allowing participating financial institutions to experiment and test their own fiat-backed tokens in a sandbox environment.
Visa’s press release highlights its global reach, with more than 15,000 financial institutions in more than 200 countries and territories already benefiting from Visa’s payment technologies. By launching VTAP, Visa is bringing its digital payments expertise to blockchain, providing banks with tools to integrate blockchain technology into their existing financial systems. Visa says this product enables programmability, allowing banks to use smart contracts and automate workflows for various financial applications.
One of the key features highlighted by Visa is VTAP’s interoperability between permissioned and public blockchains. Visa’s platform is designed to allow banks to interact with multiple blockchain ecosystems through a single API connection, making it easier for them to manage tokenized assets. Visa explained that interoperability is key to supporting broad adoption of tokenized assets, with VTAP serving as a bridge between different blockchain networks.
Visa also confirmed that BBVA is actively testing VTAP features in its sandbox. According to the press release, BBVA uses VTAP to issue, transfer and exchange banking tokens on a testnet blockchain. The bank plans a live pilot in 2025, focusing on Ethereum as the platform of choice for creating and managing fiat-backed tokens.
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