Visa has launched the Visa Tokenized Asset Platform (VTAP), a new initiative to help banks issue fiat-backed tokens on blockchain networks.
On Oct. 3, the digital payment giant announced that VTAP is now accessible through its Developer Platform. This enables participating institutions to develop and test digital assets like 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 assist banks in offering blockchain services. The company plans to extend this solution to its global network of over 15,000 clients in more than 200 countries.
VTAP is designed to provide Visa’s institutional clients with an end-to-end infrastructure for securely minting, transferring, and settling digital asset transactions on both public and private blockchains.
According to Visa, VTAP will allow banks to use their fiat-backed tokens within smart contracts. This would help automate existing workflows and facilitate the exchange of new types of real-world assets.
Vanessa Colella, Visa’s global head of innovation and digital partnerships, said that VTAP would drive institutional adoption of blockchain technology. She added:
“We’re excited to leverage our experience with tokenization to help banks integrate blockchain technologies into their operations.”
BBVA’s pilot
According to the press statement, Banco Bilbao Vizcaya Argentaria (BBVA) is one of the early adopters of VTAP.
BBVA has been testing the platform’s critical functionalities in the sandbox this year. These tests include the issuance, transfer, and redemption of a bank token on a testnet blockchain, along with interactions with smart contracts.
The firm plans to launch a live pilot on the Ethereum blockchain with select customers in 2025.
Francisco Maroto, BBVA’s Head of Blockchain and Digital Assets, emphasized that exploring blockchain’s potential will help the bank expand its services and introduce new financial solutions.
Mentioned in this article
Read the full article here