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 payment giant announced that VTAP was now accessible through its developer platform. This allows 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 make it available for live use by 2025.
VTAP
Visa described VTAP as a way to apply its knowledge of emerging technologies, including smart contracts, to help banks offer blockchain services. The company plans to expand this solution to its global network of more than 15,000 customers in more than 200 countries.
VTAP is designed to provide Visa’s institutional clients with an end-to-end infrastructure to securely create, transfer and settle digital asset transactions on public and private blockchains.
According to Visa, VTAP will allow banks to use their fiat-backed tokens in smart contracts. This would help automate existing workflows and facilitate the exchange of new types of real-world assets.
Vanessa Colella, global head of digital innovation and partnerships at Visa, said VTAP would drive institutional adoption of blockchain technology. She added:
“We are excited to leverage our experience in tokenization to help banks integrate blockchain technologies into their operations.”
The BBVA pilot
According to the press release, Banco Bilbao Vizcaya Argentaria (BBVA) is an early adopter of VTAP.
BBVA tested critical platform features in the sandbox this year. These tests include the issuance, transfer and redemption of a banking token on a blockchain testnet, as well as interactions with smart contracts.
The company plans to launch a live pilot on the Ethereum blockchain to selected customers in 2025.
Francisco Maroto, Head of Blockchain and Digital Assets at BBVA, highlighted that exploring the potential of blockchain will help the bank expand its services and introduce new financial solutions.
