- Visa’s VTAP, launching in 2025, will enable banks to issue and manage fiat-backed tokens like stablecoins on blockchain networks.
- BBVA plans to pilot its stablecoin on Visa’s VTAP, leveraging Ethereum for internal operations and future external applications.
- VTAP aims to enhance transaction efficiency and security, driving traditional banks toward blockchain integration for digital commerce.
Visa, a payments technology company, has unveiled a new product named Visa Tokenized Asset Platform to revolutionize the banking sector, whereby banks can issue and manage fiat-backed tokens such as stablecoins on blockchains. VTAP, set to launch in 2025, represents a significant advancement in utilizing blockchain technology for everyday financial transactions.
The platform will empower banks to carry out digital token operations, including minting, burning, and transferring stablecoins, as part of digital asset management strategies. Through VTAP, Visa will help promote higher efficiency and integration within the banks’ approach to supporting digital commerce and meeting customers’ growing needs for seamless and innovative solutions in the digital environment.
BBVA Pilots First Bank-Issued Stablecoin on Ethereum
BBVA– a Spanish multinational bank- expects to be among the first to run this technology in cooperation with Visa. The bank plans to leverage VTAP to issue a stablecoin backed by significant fiat currencies such as the euro or the U.S. dollar. This initiative is expected to commence in 2025, focusing initially on internal operations with prospects for external client applications as the system matures.
BBVA’s engagement in VTAP’s sandbox testing phase throughout 2024 underscores its proactive approach in the digital asset space. The bank has been a pioneer in integrating cryptocurrency solutions, offering trading and custody services since 2014. Through VTAP, BBVA aims to explore broader applications of blockchain technology in banking, enhancing transaction efficiency and security.
Strategic Implications and Industry Impact of VTAP
The strategic rollout of VTAP includes extensive testing phases involving select financial institutions to ensure the platform’s readiness for real-world applications. These tests are crucial for addressing the technical and operational nuances of running stablecoin systems on public blockchains like Ethereum, known for its robust decentralized finance (DeFi) ecosystem.
Visa’s move to facilitate bank-issued stablecoins through VTAP is indicative of a broader industry trend: traditional financial entities are increasingly adopting blockchain technology. This shift supports enhanced service offerings in the financial sector and aligns with global trends toward digitalization and financial inclusivity.
The post BBVA and Visa Set to Launch Global Stablecoin Issuing Platform for Banks in 2025 appeared first on Crypto News Land.
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