Visa has launched the Visa Tokenized Asset Platform (VTAP), a system that helps banks create and manage stablecoins (digital tokens tied to real currencies).
The platform allows banks to securely create, destroy, and transfer tokens on blockchain networks, bridging traditional banking and blockchain technology.
VTAP simplifies the process for banks to issue real money-backed tokens, ensuring stability and reliability. It also allows banks to use smart contracts, programs that automatically manage complex financial tasks. The platform integrates seamlessly with existing banking systems with a user-friendly interface.
BBVA, a major Spanish bank, was one of the first to pilot VTAP. BBVA plans to test the platform in 2024 and conduct a live trial in 2025 focusing on token issuance and smart contract applications using the Ethereum blockchain.
In the future, Visa plans to enhance VTAP based on user feedback, potentially providing solutions for secure storage and management of digital assets. VTAP is part of Visa’s efforts to enhance financial services through blockchain and promote interoperability between different blockchain networks.
In 2024, Visa took a significant step in the crypto space by partnering with Transak, aiming to streamline crypto withdrawals in over 145 countries. \
This collaboration will enable users to efficiently convert their digital assets into local currency, facilitating seamless spending anywhere Visa is accepted.
This move not only improves the user experience, but also positions Visa as a leader in the integration of traditional finance and digital currencies.
Also read: Visa is skeptical of claims that stablecoins will steal market share, calling it noise.
Additionally, Visa has partnered with Tangem to launch an innovative payment card that acts as a hardware wallet. The product allows users to seamlessly pay with their cryptocurrency or stablecoin balances, bridging the gap between traditional banking systems and digital assets.
Additionally, Visa has expanded its collaboration with Wirex to promote Web3 payments in the UK and Europe.
This development simplifies the process of trading between cryptocurrencies and traditional currencies and leverages Visa’s vast payment network to provide users with a more integrated financial experience.
