Spanish multinational banking giant Banco Bilbao Vizcaya Argentaria (BBVA) is ready to mint a pilot version of its stablecoin on the Ethereum (ETH) blockchain. Visa’s new tokenization platform, VTAP, was chosen as the technological foundation for the innovative product.
Visa stablecoin by BBVA to launch on Ethereum in 2025
BBVA could become the first world bank to issue its own stablecoin on the Ethereum (ETH) blockchain. According to an official statement, the first phase of the live pilot for select customers is expected to launch on Visa’s tokenization platform as early as 2025.
We are excited to introduce Visa Tokenized Asset Platform, a new Visa product that helps banks go on-chain, and our partnership. @bbva Powering your first stablecoin https://t.co/MiZyYLlEmE
— Cuy Sheffield (@cuysheffield) October 3, 2024
BBVA representatives are already experimenting with the VTAP sandbox to test core functionality such as issuance, transfer, and redemption of bank tokens on the Ethereum (ETH) testnet.
Cuy Sheffield, Head of Crypto at Visa, highlighted the project’s paramount importance for the entire stablecoin segment and the bank’s transition to Web3 as the new technology foundation.
We are excited to introduce Visa Tokenized Asset Platform, a new Visa product that helps banks go on-chain, and our partnership with BBVA to power the bank’s first stablecoin.
As previously reported by U.Today, in September 2024, Visa entered into a long-term partnership with hardware cryptocurrency wallet producer Tangem.
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Visa is driving a Tangem experiment focused on building a comprehensive Web2/Web3 banking application with crypto and fiat payment support through Tangem wallets.
Visa’s tokenized asset platform VTAP opens up further opportunities
Francisco Maroto, Head of Blockchain and Digital Assets at BBVA, sees the new integration as a strong boost to the adoption of blockchain in banking and payments.
We are proud to continue to be at the forefront of exploring tokenization solutions with Visa through our VTAP platform. This partnership marks an important milestone in exploring the potential of blockchain technology, ultimately allowing us to expand our banking services and expand our market with new financial solutions.
The Visa team also added that the new VTAP platform will help financial institutions issue and manage fiat-backed tokens on blockchain networks.
Developed by Visa’s in-house blockchain experts, the platform is focused on bringing programmability and cross-network accessibility to banks’ stablecoin solutions being developed on public blockchains. To achieve these goals, fiat-backed tokens are enabled within smart contracts.
