Visa unveils Ethereum tokenization platform for banks with BBVA as early adopter
Key Takeaways
- Visa’s VTAP bridges traditional banking and blockchain through tokenized fiat currencies
- BBVA among first banks to test Visa’s fiat-backed token platform on Ethereum
Share this article
Visa has launched the Visa Tokenized Asset Platform (VTAP), enabling banks to issue and manage fiat-backed tokens on blockchain networks. The platform, available through Visa’s Developer Platform, will run live pilots on the public Ethereum blockchain in 2025.
VTAP provides tools for minting, burning, and transferring fiat-backed tokens. These tokens, issued by financial institutions, will be backed by fiat currencies, ensuring their stability.
Visa’s solution is designed to integrate easily with banks’ existing infrastructure, providing a secure API-based platform for issuing and managing these digital assets.
“We’re excited to leverage our experience with tokenization to help banks integrate blockchain technologies into their operations.” said Vanessa Colella, Global Head of Innovation and Digital Partnerships, Visa.
The platform allows for programmability, giving banks the ability to manage complex transactions like lines of credit or tokenized assets, potentially improving workflow efficiency and reducing manual oversight.
Initially, VTAP will operate on the Ethereum blockchain, providing banks with a secure testing environment. Visa plans to expand its compatibility based on demand, including an integrated custody solution to manage private keys and wallets without requiring additional infrastructure.
BBVA is already testing VTAP’s functionalities, including token issuance and smart contract usage. The bank is expected to run a live pilot using VTAP on the public Ethereum blockchain in 2025.
Share this article
Go to Source
Author: Estefano Gomez
