Visa has introduced a new platform designed to assist banks in issuing and managing fiat-backed tokens, including stablecoins, on blockchain networks.
The Visa Tokenised Asset Platform (VTAP) allows financial institutions to mint, burn, and transfer fiat-backed tokens such as tokenized deposits while also providing opportunities to explore various use cases. Currently in a testing phase, Visa intends to support live programs in the upcoming year as participating banks prepare to launch with their customers.
This platform is engineered for banks to utilize their tokens within smart contracts, enhancing programmability. For instance, Visa suggests that banks could automate the management of complex lines of credit through smart contracts, releasing payments in the form of fiat-backed tokens as specific terms are fulfilled.
Visa emphasizes the importance of interoperability between various blockchains for banks utilizing the platform. With a single API connection to VTAP, banks will have the ability to facilitate multiple use cases and engage with partners and clients across both permissioned and public blockchains.
Vanessa Colella, Visa’s global head of innovation and digital partnerships, stated, “We’re excited to leverage our experience with tokenization to help banks integrate blockchain technologies into their operations.”
Spanish bank BBVA has already engaged with the platform’s sandbox environment, testing the issuance, transfer, and redemption of a bank token on a testnet blockchain, along with interactions involving smart contracts. BBVA is planning its first live pilot with selected customers in 2025 on the public Ethereum blockchain.
Francisco Maroto, head of blockchain and digital assets at BBVA, noted, “This collaboration marks a significant milestone in our exploration of the potential of blockchain technology and will ultimately help enable us to broaden our banking services and expand the market with new financial solutions.”