2 min read Last updated: October 4, 2024 | 1:39 PM IST
Visa Inc. has launched a new platform to allow banks to issue stablecoins and other fiat-backed tokens internationally. The Visa Tokenized Asset Platform (VTAP) is expected to go live next year.
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VTAP will allow banks to “mint, write, and transfer” tokens, providing a robust infrastructure for financial institutions looking to leverage the benefits of blockchain technology, the statement said. The launch comes as more businesses and financial institutions become interested in how cryptocurrencies and blockchain can enhance their operations.
“Visa has been at the forefront of digital payments for nearly 60 years, and with the introduction of VTAP, we are once again setting the pace for the industry,” said Vanessa, Global Head of Innovation and Digital Partnerships at Visa.・Mr. Colella says: statement.
“We are excited to leverage our experience in tokenization to help banks integrate blockchain technology into their operations.”
Testing phase and future plans
Spanish bank BBVA has been testing Visa’s platform for a year, and the pilot is expected to begin with some customers on the Ethereum blockchain sometime next year.
A stablecoin is a cryptocurrency that is typically pegged to a stable asset, such as the US dollar. They have received a lot of attention in recent years. They serve as a bridge between traditional finance and cryptocurrencies, providing a less volatile option for trading and a safe haven from the price fluctuations common with cryptocurrencies such as Bitcoin and Ether.
Visa’s entry into the space follows similar moves by other financial technology giants. PayPal Holdings Inc. has already launched the stablecoin PYUSD, and Stripe Inc. is allowing merchants to accept stablecoins for online transactions.
Experts suggest this development could accelerate the adoption of blockchain technology in mainstream finance, giving banks new tools to innovate and expand their services in the digital age. I am. As the lines between traditional banking and cryptocurrencies continue to blur, platforms like VTAP could play a key role in shaping the future of global finance.
First published: October 4, 2024 | 1:39 PM IST
