Visa has rolled out a new product to help banks issue fiat-backed tokens on the Ethereum network. One of the first banks to use this platform will be BBVA, a Spanish bank. They plan to launch a live pilot in 2025.
The Visa Tokenized Asset Platform (VTAP) allows for the creation of fiat-backed tokens. These tokens are powered by smart contracts. This technology helps digitize and automate existing processes. Ultimately, it will enable the exchange of real-world assets (RWAs), as noted in an announcement from CoinDesk.
Banks can use this platform to purchase tokenized RWAs, like commodities or bonds. They will benefit from near-real-time settlement using these tokens. BBVA is excited to be among the first to implement VTAP, with their pilot set for 2025.
Visa has a strong background in blockchain and digital assets. They started processing cryptocurrency payments in the stablecoin USDC on Ethereum back in March 2021.
Recently, Visa partnered with Brazil's central bank for a pilot project focused on developing a central bank digital currency (CBDC).
This information was first reported by Blockworks.